Thursday, April 1, 2010

Comcast attempts to build muscle

By Melvin Ward

Comcast is slowly but surely taking steps to become the ultimate media giant; and regulating simple media functions that the public uses on a day-to-day basis.

Comcast Corp., the nations leading cable provider, is in negotiations to buy a majority of NBC Universal Studios from General Electric for reportedly $30 billion. Under the proposed deal Comcast would own 51 percent of NBC Universal with General Electric owning the remaining 49 percent. On January 28, Comcast submitted a 145-page application to the Federal Communications Commission (FCC) for approval of the merger.

The problem with this merger is Comcast’s request for the FCC not to consider the Internet and broadband aspects of the merger before approval. Critics think that Comcast would try to abuse its power by limiting or controlling over which NBC Universal content appears on the Internet. Internet viewing is a popular and growing industry in the media; and with this merger Comcast would acquire 32 percent of zulu.com. Zulu.com is one of the leading providing services of viewing show or programs on the Internet. Critics think that Comcast would limit the content available and charge customers for things that were once free or of minimal cost. This point feeds into the notion that companies are looking to gain ownership over the Internet, instead of just being Internet providers. Comcast refutes claims that they will become an Internet gatekeeper for viewing videos with this statement, "To the extent that any one company maintains a substantial advantage in attracting online video viewers, that company is Google -- not Comcast or NBC Universal.

If this merger is approved, Comcast would acquire more than 30 cable channels, including USA, E!, CNBC, and MSNBC along with the broadcast

networks and Universal studios. Many critics of the media industry argue that a company that provides cable and Internet, yet alone the number one provider in the country; does not need control over all of these entities. This will give Comcast more than enough power to change the cable and Internet industries. They will be able to control prices that many already argue are too high. They would also make their products and channel the premium products to increase their revenue.

This deal is dangerous on so many levels, programming will be more censored than ever as Comcast seeks to make more money and limit their competition. They will still have competition amongst the 5 other media giants, but companies on the lower level will be limited. Comcast having power over programming just is not right. They will have the power to place content where they please and at the company’s discretion. Things like public TV and news coverage can be greatly affected. They will have the power to oversee everything and dictate which news is reported to the public. The fact that Comcast has asked the Internet not be considered for the approval of this merger just looks like something tricky is going on here. They have plans up their sleeve to be the ultimate monsters and giants of the media.


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