Cable’s Comcast buys NBC, will TV prices go up?
December 3rd, 2009, 7:34 am · 15 Comments · posted by Tamara Chuang, a.k.a. The Gadgetress
It finally happened. A cable TV company bought NBC. Comcast Corp.’s acquisition of the network from the General Electric Company has been talked about for months so this isn’t a surprise. The deal could take 18 months to get approved by regulators.
So, what does it mean to viewers in Orange County where there is no Comcast? (The two cable TV providers here are Time Warner Cable and Cox Communications. O.C. also has Verizon FiOS TV, AT&T U-verse and, of course, Dish Network and DirecTV.)
It could mean great things, like more online TV viewing choices! But it also could mean higher prices.
Remember why our cable bills keep going up? Time Warner Cable blames rising carriage fees, or the price it must pay a TV network to carry the channels. Some of the highest prices charged to paid-TV providers are from the parent of ABC: Disney. Prices for Disney-owned ESPN, for example, are up to $4 per cable customer. Time Warner has said that the bulk of its prices are from these fees.
NBC owns a ton of channels, including USA, Bravo, SyFy, CNBC, MSNBC, the NBC network and Universal Studios.
Comcast itself owns a bunch too, including Versus, the Golf Channel, E Entertainment, the Style Network, G4, and FEARnet.
With the deal, Comcast gains more channels that could affect TV bills everywhere.
On the other hand, Comcast could use its power to keep TV prices down (yes, bear with me). It already works with several TV providers who offer channels and Comcast “remains committed to continuing” free over-the-air television, according to USA Today. “That includes support for local news and children’s programming. The cable company also said it will add two independently owned channels each year for the next three years to its package of digital television services.”
Comcast is also Time Warner’s partner in “TV Everywhere,” a move by the cable industry to begin offering subscribers the same TV shows online. Plus, NBC is a founder in Hulu.com, the TV-industry-backed site offering popular TV shows free for anyone to see.
The New York Times says however that NBC’s channels aren’t the big money makers. The fourth-place network is just part of an industry where “the economics of the broadcast television business has deteriorated in recent years amid declining overall ratings and a decline in advertising. By contrast, cable channels have continued to thrive because they rely on a steady stream of subscriber fees from cable companies, such as Comcast.”
And we should expect to hear from consumer groups.
Advocacy group Free Press in Washington reiterated today that it would ask regulators to block an NBC sale to Comcast because the cable operator would have too much power over what viewers see, reports Bloomberg News. The Obama administration also plans to investigate potential stifling of competition.
UPDATE, added 9:38 a.m.: Politicians are also chiming in. John D. Rockefeller IV, Chairman of the U.S. Senate Committee on Commerce, Science, and Transportation, just released this statement:
“I have some serious questions about the deal announced for Comcast to assume control of NBC Universal,” said Chairman Rockefeller. “A joint venture of this magnitude would benefit from regulatory oversight. When major media companies swell to control both content and distribution, we need to make sure consumers are not left with lesser content and higher rates.”
Business wise, the agreement creates a joint venture. Comcast will own 51 percent and G.E. will own 49 percent. The deal is valued at $30 billion. Jeff Zucker, NBC Universal’s chief executive will stay on as head and will report to Comcast’s CEO. Lots more details in the Comcast press release.
Around the web:
- Comcast press release announcing deal
- Comcast, GE strike deal (Wall Street Journal)
- Comcast gets NBC from GE, shaking up TV industry (New York Times)
- Comcast Gains Majority Stake in NBC With GE Venture (Bloomberg)
- Mega-media deal: Comcast taking control of NBC Universal (USA Today)
- Free Press: Comcast-NBC Mega-Merger Must Be Stopped (Free Press)
Reader Comments
Comments are encouraged, but you must follow our User Agreement.- Keep it civil and stay on topic.
- No profanity, vulgarity, racial slurs or personal attacks.
- People who harass others or joke about tragedies will be blocked.
- By posting your comment, you agree to allow Orange County Register Communications, Inc. the right to republish your name and comment in additional Register publications without any notification or payment.
15 Comments
-
ADVERTISEMENT
-
Things to do
-
To view local listings CLICK
HERE
Or visit your TV provider: * Cox Cable * Time Warner Cable * DirecTV * Dish Network * AT&T U-verse * Verizon FiOS *
Watch a show online HERE. Get TV/mobile help on Twitter
-
-
The North Orange County Computer Club answers your tech questions. Visit the PC Club page and the Stump archives.Recent Q&As:
>>Click HERE for more PC Club answers 
More O.C. Tech News- SendGrid Extends Into Email Marketing June 18, 2013
- CrowdStrike, Headed By George Kurtz, Debuts Security Software June 18, 2013
- RFaxis Debuts WLAN Power Amplifier June 18, 2013
- Emulex Certifies With Infortrend June 18, 2013
- Oculus VR Gets $16M For Virtual Reality Gaming Headset June 17, 2013
- Fisker Automotive Burnt Through $1.4 Billion June 17, 2013
- PathCentral Adds Penn Medicine June 17, 2013
- ClearLight Partners Sells Portfolio Firm June 14, 2013
- SYSPRO Wins Manufacturer June 14, 2013
- Broadcom Debuts New Communications Processors June 14, 2013
-
ADVERTISEMENT
Here's a list of TV/mobile companies helping consumers one tweet at a time. 
I don’t pay for cable or satellite tv. I use an antenna. Keep feeding the system people! They have you thinking bottle water is what you should drink!
I don’t pay either…I don’t watch that many channels….most of the shows I watch are on hulu, online, or via broadcast antenna. What’s the point of shelling out $80+ or more watching the same thing? I don’t give a crap about these weird specialty channels.
My HBO/other premium shows…I’ll buy the DVD’s when they’re on sale, or pool with my roommate. Still ends up WAY cheaper than getting cable.
My concern is will Brian Roberts, CEO of Comcast, use MSNBC and NBC NEWS as a platform for his political opinion like Rupert Murdoch uses Fox News to push his political agenda.
Don’t forget Time Warner owned many cable stations at the same time it owned Time Warner cable. Comcast/NBC most likely will have to play by the same rules and regulation as TW/TWC did when they were together. One reason why TW spun off TWC is because the savings by owning the stations didn’t benefit TWC like it thought it would.
Well John be happy that you live in a location where you can get over the air tv. Many of us do not and don’t have a choice due to location/terrain blocking us from Mt. Wilson, it’s either cable or satellite.
If they are so broke and have to keep raising our rates just to cover costs how can they afford to buy NBCU? It’s time to open up the cables to competition and see how much it REALLY costs for cable.
When Totally Worthless Crap bought A-Del-Pee-On-Ya they raised prices and the service got worse
I bet if Comcrap raises their prices Totally Worthless Crap will follow (The corrupt CEOs and their stooges need more money)
The real loser on this deal will be Conan, when they move Jay back to replace him!
For $65 a month I should have Ala-Cart or at least Showtime or Cinemax or 5 free pay per views per month for no extra charge
Maybe we will get better coverage of obama. They weren’t reporting the real news anyway. Time for them to go. Climate change scandal, the didn’t even mention it. Nbc has been horrible about reporting truthful and honestly.
Yawn. This is a tech-blog. Take your Fox-fed talking points somewhere else.
I use an antenna for free HD tv’s.
To John
The apartment I live in does not allow outside antennas of any kind (including dishs) and they refuse to put up a master antenna so those on fixed income (almost 70%) can get over the air digital TV
A few use rabbit ears and get maybe 2 stations, before they could get 90% of TV stations
Most gave up TV, the others put up with a few channels
Others like me pay outragous prices to see the few channels we want to see
Digital TV is a failure as far as we are concerned!
You may already know this, but landlords cannot prevent you from placing antennae or satellite dishes on your balcony or patio. This is an FCC rule. It’s messed up that they won’t put an antenna on the roof for common use.
Nice try Bobomo
But none of the apartments have balconies or patios
And its in the lease (nothing outside)
(Believe me I could set up my dish outside and not have to drill a single hole or mount it to any surface if they would let me)
One person who had a south facing apartment had a dish inside the window and he said it worked great
The apartment has a deal with A-Del-Pee-On-Ya and paid
them a flat $250 and you could get basic through your cable ready VHS or TV (if you wanted movie or PPV you paid full price for a box)
Then those rotten scum from Totally Worthless pulled the deal and everyone who wants to watch more than 2 channles of TV must pay outragous prices like me.
When digital works good it works good
When it works fair or poor it doesnt work at all