Comcast seeks NBC-U [Telecom]

> Comcast, a major cable TV distributor, has branched out into > providing telephone service and Internet service. > It now seeks to purchase NBC/Universal... > Now that Comcast is providing telephone and internet service, > perhaps it would be too big as well if it included NBC in its > portfolio.

NBC is not the same thing as NBC Universal. NBC is a broadcast network and broadcast station owner; NBCU is a TV production company. Both are controlled by General Electric.

> In other words, what was the point of breaking up the old AT&T > if we're gonna allow new companies to become as big and > powerful?

Like GE for example?

> The idea of a cable [television] company--the distributor-- > owning the production company troubles me.

Comcast already owns numerous production entities.

Under the proposed agreement, Vivendi SA would sell the 20% of NBCU that is presently owns. If the deal goes through, Comcast would own 51% of NBCU, and GE would own 49%. > Before WW II, the big movie studios owned the theatres and > controlled what movies appeared. It was hard for independents > to get their films shown if they didn't have the blessings of > the big guys. After the war an anti-trust action forced the > studios to sell off the theatres, and it appeared things worked > better accordingly.

More to the point, independent theater owners couldn't get access to popular films owned by the big guys.

By the same token, "big guy" CATV companies don't want to sell their programming to competitors (MMDS, private cable companies, telcos, DirecTV, Dish Network). Long-standing federal program-access rules require them to do so. These rules have accomplished that goal without requiring the CATVs to divest their program production entities.

Neal McLain

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Posted 5 years ago by Neal McLain in General Telecommunications Forum

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