A merger between one of America’s biggest cable companies and one of its biggest TV content providers is bound to have repercussions for those of us who sit in front of sets. The weight and shape of that impact will be determined not only by the Comcast and NBC executives who are huddled today to finalize the deal, but also by regulators in Washington who will bless or block the merger.
Officials from the Federal Communications Commission, and other agencies too, will study the merger, perhaps for as long as a year, to decide if it should be allowed to proceed. As they deliberate, advocates from Consumers Union, the parent company of Consumer Reports, and other consumer groups will be pressing for the federal government to block the merger if the costs outweigh the benefits, or to ensure conditions that will minimize the possible downsides for TV viewers and cable subscribers should the deal eventually get the green light.
“The proposed merger would give Comcast unprecedented market power in many communities, controlling consumers cable and Internet access, as well as local TV stations,” according to Joel Kelsey, a policy analyst with Consumers Union. Here are several specific consumer concerns and questions:
Potentially higher cable bills for consumers. By bringing together channels now owned by Comcast and NBC, the new entity would own a whole lot of channels, including NBC’s networks, USA, MSNBC, Bravo and E!. Will the new company use that clout to drive up the cost of providing those channels to competitors, like satellite TV and fiber-optic TV services, thus all-but-forcing them to pass hikes along to consumers? Might they even refuse to provide some them channels to other services at all?
Possibly compromised channel lineups. As a cable company, Comcast of course decides which channels it carries on its TV service. Advocates worry that the new combined company might choose not to carry channels that pose a competitive threat to their own channels.
Whither Netflix and Hulu? NBC has been a leader and innovator in providing alternative ways for consumers to access video content online. The popular website, Hulu, which streams TV shows for free is part of the NBC empire. But online video is perceived by cable providers as a threat to their business. Will Comcast’s concerns affect the new entity’s decisions about the future of Hulu? Will the new entity deny access to some of its content to other online video distributors it doesn’t own, such as Netflix, SlingBox or Apple TV of content?
For more on the advocacy efforts of Consumers Union, visit HearUsNow.org, the organization’s telecommunications Web site. —Paul Reynolds
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