Now Hear This

An open and frank discussion of media and telecommunications issues - from the consumer point of view.

Lawmakers in Washington will hopefully be asking a lot of tough questions when executives from Comcast and NBC-Universal come before them today to discuss their proposed merger.


Like most everyone without direct ties to Comcast, Consumers Union think the proposed marriage of the country's largest cable company and the multi-tentacled NBC-Universal media empire is a truly lousy deal for consumers.


Here's what CU and other public interest groups wrote in a joint letter to members of Congress recently:


"A combined Comcast/NBCU would control a major television network and film studio, the nation’s largest cable company and its largest residential broadband provider. The merged giant would have strong incentives to discriminate against other multi-channel video providers in granting access to its wealth of programming, including all of its broadcast stations and “must-have” national and regional networks that air live or same-day sporting events, as well as the market power to enforce anticompetitive "bundling."

"The proposed deal could make it even harder for diverse and independent voices to find an audience, as Comcast would have the incentive to prioritize NBC channels and programs over others. Control of NBCU programming also would give Comcast the opportunity to prioritize its own online video products over those of its competitors – or sharply reduce online video distribution altogether – pushing independent producers out of the picture."


Click here to read the entire letter.


Mark Cooper of the Consumer Federation of America is scheduled to testify on behalf on consumer groups, including Consumers Union. Click here to read his preparted testimony.


Comcast has offered some "concessions" it says should answer any concerns about the deal, but they do virtually nothing to actually protect consumers.


That means the job of protecting consumers in this unprecedented media merger will fall primarily on Congress, the White House, the Federal Communications Commission, the Justice Department and the Federal Trade Commission. Each entity with direct responsibility for approving the deal -- including Justice, the FCC and the FCC -- need to make it clear that the sort of window dressing "concessions" are so inadequate as to be insulting. Congress and the White House need to hammer away on the agencies involved directly to make sure that the deal is either rejected outright or not approved until the companies agree to extensive and enforceable consumer protection concessions.


Absent that, federal regulators should not even consider approving this anti-competitive, anti-consumer mega merger.


CU policy analyst Joel Kelsey recently put the situation into perspective very well.


"This merged giant is likely to result in higher cable and Internet rates for consumers, less free online video content and fewer choices for consumers," he says. "Congress should look at this merger with a very skeptical eye. Lawmakers need to stand up and be a voice for consumers.”

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