Comcast has proposed an acquisition of Time Warner for $45.2 with Billion in hold of their stock. People have been questioning this move, and its threat to create a monopoly in the cable industry, but is it really? From most of the news we’ve been hearing, most advisers are saying its a great move. Both companies will still be marketing separately under their own names, but sharing the same resources and technology. What this means for people up North, especially in New York, is that they will now have access to faster and more dependable technology that Comcast brings to the table that TW can’t match.
“Comcast’s chief executive, Brian Roberts, on Thursday said that his company and Time Warner Cable do not operate in the same ZIP codes. But the issue with cable mergers is not that they reduce or eliminate head-to-head competition for subscribers, because most cities have just one cable provider. This deal is important because it would give Comcast greater power over media companies like CBS and Disney and Internet services like Netflix and Amazon. And that would ultimately give it more control over American consumers.”
– NY TIMES
Comcast and Time Warner Merger
If the Government OK’s this deal, Comcast will be operationing in 43 of the 50 largest metropolitan markets. This means it will be in 30% of homes, and 1/3 of all internet subscribers in the Country. Some news reporters have mentioned the fact this will give Comcast leverage in contract negotiations with media companies over what TV channels cable companies are willing to carry and how much they pay for them. Such contract talks have become increasingly acrimonious in recent years. Also, many people have ask us here at Fast Business Internet, about Netflix, and what will happen to that.
“The merger could also strengthen Comcast’s position in its dealings with businesses like Netflix that send data to customers over broadband connections. Representatives for cable and phone companies have argued that content companies should pay them fees to transport movies and online video on top of the monthly charges individuals pay for Internet access. A recent federal appeals court decision made it easier for cable and phone companies to demand such payments by striking down Federal Communications Commission rules that required broadband providers to treat all Internet content alike.”
– NY TIMES
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