Comment on Winners and losers of the demise of the big Comcast deal

Winners and losers of the demise of the big Comcast deal

The combined company would have created an Internet and TV behemoth with unprecedented power over what Americans download and watch. [...] consumer advocates and Internet activists had railed against the deal from the start, saying it would limit consumer choices and lead to higher prices. Dish, the satellite TV company that recently introduced a Web TV program called Sling TV, was one of the backers of a group called Stop Mega Comcast that advocated against the merger with regulators. Netflix, which had faced off with Comcast over having to pay it network-connection fees to ensure that its content would stream more smoothly to Comcast subscribers, also opposed the deal. By criticizing the deal and getting negative stories about Comcast to the media and Capitol Hill, "we were able to provide enough cover" for regulators to challenge the deal, said Matt Wood of Internet and media advocacy group Free Press. The combined company would have had more power to negotiate lower prices for TV and movies that are piped into subscribers' homes from companies like Fox, Disney and Viacom. The company spent more than a year working on this $45 billion transaction, which would have added millions to its subscriber rolls, broadened the reach of its X1 video operating system, given heft to its profitable business-services division and helped it cut costs. [...] the increased scrutiny could be good for customers: "Increased regulatory scrutiny could prompt cable companies to raise broadband prices less aggressively in the future for fear of drawing even more attention," said Andy Hargreaves of Pacific Crest Securities in a note.

 

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