I don’t think this is necessarily a bad thing. Obviously it’s not great for those who’ve lost their jobs… But I think most of those jobs were created when larger media companies started noticing the rise of indie developed content on places like youtube, newgrounds, etc, and started trying to reproduce that indie success for themselves.
I don’t think that’s been the money spinner they all hoped, because the strongest aspect of web videos is often the individual/niche voices which are able to thrive outside of a corporate environment. No one wants to watch CNN pretend they ‘get you’.
Maybe this will lead to a growth in places like Stareable, which offer a platform to indie voices, without attempting to copy and kill them.