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Giant Wall
Comcast To Purchase Controlling Position In NBC
The Federal Communications Commission has already approved a very controversial combination. Comcast will be purchasing a controlling stake in NBC. Communications industry advocates are saying this is a great thing. The idea is that the combined business will do good things. Public interest groups, however, are worried the Comcast/NBC combination could be terrible for consumers.
Facts about the Comcast NBC merging
Comcast made an announcement recently. About 51 percent of NBC will be taken over. Comcast intends to spend more than $30 billion to purchase that controlling stake from General Electric business, which currently controls NBC Universal. There are a number of people that Comcast controls right now. That includes 23 million cable subscribers and 17 million internet subscribers. NBC, CNBC, Bravo, Oxygen, Universal Studios and about 30 percent of Hulu is all owned by NBC Universal. The FCC and Justice Department anti-trust unit have given approval for the purchase.
The great part of the Comcast NBC merger
The Comcast NBC merger had conditions though. The FCC approved of it. About 1,000 hours of informational news programming can be added to Comcast. The business has also promised to provide broadband internet access for $9.95 a month to low-income households. Specific regulations have also been put in place to help prevent the Comcast-controlled NBC from using its control to kill rivals in both internet and television programming arenas.
The bad parts of the NBC Comcast merger
Though Comcast has promised to take action to prevent unfair competition, many consumer advocates are concerned about the merger. One thing stated by the FCC Commissioner who voted against the deal said, "concentration of media under Comcast's control would put too much power into one business that controls the access consumers have." The media consolidation means that Comcast NBC could create more of a wall around their content. There is going to be more abuse with vertical integration even though costs might be reduced. There isn’t any net neutrality around right now. That means the combination may be harder for the Federal Communications Commission to control than it believes.
Citations
NPR
npr.org/2011/01/18/133024499/comcast-wins-fcc-approval-to-take-over-nbc?ft=1&f=1001&sc=tw&utm_source=twitterfeed&utm_medium=twitter
Washington Post
washingtonpost.com/posttech/2011/01/the_federal_communications_com_8.html
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