New Report: Comcast/NBC Merger Is Bad News for the Public
Posted December 3rd, 2009 by Josh Stearns
Questions abound after the announcement of the Comcast/NBC merger. This morning, Free Press and the Consumer Federation of America released a new analysis showing why the deal poses a serious threat to competition and would harm the public interest.
The report, Why the Comcast/NBC Merger Poses a Major Threat to Video Competition Antitrust Authorities Cannot Ignore, finds:
• A Comcast-NBC merger would hurt competition in traditional video markets. A merger between the nation’s No. 1 cable operator and a major television network threatens competitive rivalry and diversity in the video marketplace. The new entity could leverage its control over content to charge its rivals more — costs that will ultimately be paid by consumers.
• A Comcast-NBC merger would hurt competition in the emerging online video market. Comcast is the largest residential broadband service provider; NBC produces top-notch content and has a substantial interest in the online video provider Hulu. A merged company would have a powerful motive to starve competing online video sources by denying them access to vital content.
• A Comcast-NBC merger would trigger more media consolidation. Approval of this deal will undoubtedly trigger a merger wave, as the remaining players in both the distribution and content markets seek to muscle-up to match this new behemoth. As a result, competition from new entrants will be limited, consumer choice will be restricted, and prices will rise.
