Fragmentation of the internet is rather e.g. the Great Firewall of China.
"Mostly dead", per Princess Bride, allows the possibility that they will return to life.
And for the rest of us who are caught in the middle, those above options are all that we have.
Imagine if restaurants only had Kosher and Halal food, but no longer make "regular" food because "regular" people will reluctantly eat Kosher or Halal, but Kosher and Halal customers will not entertain "regular" food.
So the entire stack all the way down becomes bifurcated due to political beliefs.
https://nassimtaleb.org/2016/08/intolerant-wins-dictatorship...
These companies will get completely crushed if the stock market decides that even a company with the scale of facebook can't establish a permanent moat from new entrants. A bit of a MySpace moment happening again
HBO is older than Netflix, as are most of the media companies opposing Netflix. Netflix was first in streaming, but streaming is just a delivery mechanism, the real product is the content and (but for a one-off) they haven't radically transformed that. Netflix isn't “fragmenting", movies and serialized shows are moving from TV/Cable (and, recently, theaters) to streaming for delivery.