One thing is certain about Comcast’s proposed $45 billion merger with Time Warner Cable: It doesn’t pass the smell test. Comcast claims that the combination of the number one and number two cable companies will somehow enhance rather than diminish competition and lead to greater consumer satisfaction. Don’t worry, Godzilla will play nice on the playground.
The resulting company would have at least 30 million cable customers, just under 30 percent of the TV market, as well as 38 percent of high-speed Internet customers. It will have virtual monopoly cable control over news and public service programming in cities like Chicago, Los Angeles, Philadelphia, New York City and Washington, D.C. It will be able to exact price concessions from content providers, forcing some out of business, limiting innovation and variety. With net neutrality rules now under assault, it will be positioned to charge discriminatory rates for high-speed access or to discriminate against Netflix and other companies seeking to stream over its cable. And Comcast will be in position to decide what gets priority access and what viewers across much of the nation won’t see.
Comcast is just digesting its previous mega-merger, the takeover of NBC Universal that should have been blocked by the Federal Communications Commission (FCC). That leaves Comcast controlling an empire that includes NBC, CNBC, MSNBC, USA Network, Telemundo and other networks.