Alarming Charts Show Just How Much Power Comcast Will Have Over Cable Industry If Time Warner Deal Stands

[Rapunzel]

http://www.theblaze.com/stories/2014/02/14/alarming-charts-show-just-how-much-power-comcast-will-have-over-cable-industry-if-time-warner-deal-stands/

Alarming Charts Show Just How Much Power Comcast Will Have Over Cable Industry If Time Warner Deal Stands
Feb. 14, 2014 5:23pm Jason Howerton   

Worries continue to swirl around Comcast’s recent $45 billion buyout of Time Warner Cable, a deal that combines the two biggest U.S. cable providers.

The concerns are not unjustified. If the merger is approved, Comcast would control more than half of American cable subscribers. Critics argue that the mega-merger represents a “quasi-monopoly” and customers will ultimately pay for it as lack of competition could lead to higher prices.

Using data from the National Cable and Telecommunications Association, these graphs provide and illustration of how the cable industry will change if the merger is successful:







This domination of the market is problematic for a number of other reasons too, including the potential for a lack of diversity of voices. TheBlaze network’s CEO Chris Balfe was quoted in Variety as saying:

   

Major MVPDs do not have a good history of supporting independent programmers whose content is in demand like TheBlaze and we are skeptical that giving Comcast even more market power will benefit consumers, promote competition or lead to more diversity of voices or consumer choice on their channel line ups.”

Balfe isn’t alone either. The left-leaning news website the Huffington Post has been blasting the deal as a “disaster” for American customers since the news first broke earlier this week.

[jmyrlefuller]

This is overblown.

For one, it is not like the proposed Comcast/TWC combination is going to push out other competitors. Most of these companies already operate with monopolies on the cable system in their respective territories-- this system only consolidates separate territories. The amount of choice does not change at all. For subscription TV they can choose the local cable franchise, Dish or DirecTV, just as they did before. Internet may be a bit more problematic, but satellite providers are also available there and wireless providers (who coincidentally also offer the technologically superior fiber-optic systems) also allow for high-speed Internet.

If anything, it will make it easier for television outlets to negotiate for carriage in large areas of the country by consolidating it into one company.

[massadvj]

This is overblown.

For one, it is not like the proposed Comcast/TWC combination is going to push out other competitors. Most of these companies already operate with monopolies on the cable system in their respective territories-- this system only consolidates separate territories. The amount of choice does not change at all. For subscription TV they can choose the local cable franchise, Dish or DirecTV, just as they did before. Internet may be a bit more problematic, but satellite providers are also available there and wireless providers (who coincidentally also offer the technologically superior fiber-optic systems) also allow for high-speed Internet.

If anything, it will make it easier for television outlets to negotiate for carriage in large areas of the country by consolidating it into one company.

I was going to say pretty much the same thing.  Comcast already has a quasi-monopoly in every territory it operates in.  There is plenty of competition for Comcast by way of substitute products, however.  And there are more options available to consumers every day.  If Comcast gets overly aggressive in its pricing it will find its customer base eroding faster than it already is.

[truth_seeker]

In our town you can use Time Warner or Verizon. Both have lines installed. Having competition has not kept rates low.

We will soon drop cable TV, keep high speed Internet and go back to good antennas,  for "OTA." Over the air.

Roku brings Netflix, Amazon Prime, Hulu and a lot of free quality stuff, all  for a fraction of cable TV bills.

[mountaineer]

‘Bloodbath’ expected for execs if Time Warner purchase approved
By Richard Johnson
February 16, 2014 | 3:04am
New York Post

Pat Kiernan is safe, but there will be a bloodbath in the executive suites if Comcast’s purchase of Time Warner Cable for $45 billion meets with federal approved.

Kiernan, the erudite morning news anchor and host of “In the Papers” on Time Warner’s NY1, will actually be seen in millions more homes when the nation’s two largest cable companies merge.

Sen. Chuck Schumer put out a statement Thursday saying, “It seems that local jobs, as well as Pat’s ‘In the Papers’ segment, are not in danger.”

Not quite.

“The bosses at Comcast have no need for their counterparts at Time Warner,” said one insider. “If the Time Warner execs — including CEO Rob Marcus — aren’t already looking for new jobs, they should be.”

Both companies are hated almost equally by their customers. In a Consumer Reports survey last April, out of 17 cable companies, Comcast ranked 14th in terms of customer satisfaction, while Time Warner was 15th.

[kevindavis007]

In all fairness I say in 10 - 15 years more people will be leaving Satellite and Cable companies and watch more programming of the internet.

[massadvj]

In all fairness I say in 10 - 15 years more people will be leaving Satellite and Cable companies and watch more programming of the internet.

They already are.  This is what is driving the consolidation in the cable industry to begin with.

[truth_seeker]

In all fairness I say in 10 - 15 years more people will be leaving Satellite and Cable companies and watch more programming of the internet.

For many it is now or fairly soon. I expected resistance from my wife over dropping cable TV, but she surprised me and said fine, lets do it.