- Image via Wikipedia
Since announcement of the Comcast/NBC-Universal merger consummated the deal creating subsequent analysis and conjecture about how the new venture will be structured, with its impact on programming distribution and fears of dominance, and anti-trust issues within the marketplace; Comcast is set to go before regulators to convince a skeptical crowd how this union will benefit competition and the continued adoption of broadband access.
News of the deal set-off a firestorm of controversy from public interest groups, competitors, and Internet Access Providers alike, all concerned over the potential abuses such a merger could unleash on Broadband stakeholders and their ability to access, and compete in what is perceived as a Free Internet World.
Ultimately though, a deal such as this has long been the dream of Comcast leadership including lessons learned from previous merger attempts to bond programming and pipeline, thereby creating market dominance along with a competitive edge for the long haul; and it all may be as simple as this scenario which drive the motives behind the acquisition of NBC-Universal. But upcoming regulatory scrutiny will decide how the merger will stand-up under the glare of legislators.
Comcast has always, since its inception, believed in the pipeline and the business benefits of building an infrastructure with which to carry interesting, informative, and socially beneficial programming on a broad scale within a national market. The pipeline is the core business, or the building blocks if you will, of which all other Comcast businesses are constructed. The strategy has not changed, and it fits well with the advent of high cost content that has driven smaller operators to the merger or take-over table.
To fill the concept of a pipeline with relevant content, generating concurrent and steady revenues on a monthly basis, Comcast realizes the need to be more than just a pipeline filled with expensive to carry programs. It needs a strong formula to deliver vertically integrated demand driven content that will outstrip the competition in securing bundled revenue streams in an increasingly broadband proliferated genre. Hence, the NBC-Universal merger that gives the right recipe of owned versus purchased programming rights.
The cable giant has not under-thought the implications of the regulatory hurdles it would face with its merger. The company has for many years relied upon strategic thinking within a 5 to 10 year framework in predicting where the pipeline industry is headed, and then acting upon that strategic intelligence to formulate a plan of action. So, it is not a mere coincidence that NBC-Universal came into its sights at this time, but was more of researching all the implications, including regulatory, and waiting for the right opportunity at the right price. NBC-Universal filled this need as an underperforming part of GE-Vivendi SA considered not a good operational fit from the get-go. It has continually and concertedly moved to reassure regulators of its intentions to run NBC-Universal as a separate company, making it more transparent and independent, to include Hulu with its free Internet content concept.
In conclusion, Comcast motives are simple. Acquire more vertically integrated programming to fill the pipelines serving 24 million customers with unique and relevant content used both in a linear and broadband format that preserves the status-quo and addresses the future. It’s a win-win situation for Comcast; its customers, and the Cable Industry.
Related articles by Zemanta
- GE profit tops analysts' estimates, shares ease (financialpost.com)
- To get NBC, Comcast still has persuading to do (sfgate.com)
- Josh Silver: Comcast Launches "TV Everywhere": Say Goodbye to Free Online Television (huffingtonpost.com)
- Breakfast Media Minute: September 23, 2020
- Ajit Pai on Tribal Broadband, Defense Department’s 5G Network, Mobilitie at Daley Center, New Register of Copyrights
- CEO Greg Mesch Recounts How CityFibre, UK’s Third Major Telecom Provider, Grew With Wholesale Network
- Coronavirus Pandemic Renders Small Businesses More Reliant on Digital E-Commerce Platforms Than Ever Before
- Breakfast Media Minute: September 22, 2020
Signup for Broadband Breakfast
Fiber4 months ago
Fiber Networks Hold a Cybersecurity Advantage Over Rival Co-Axial and Wireless Technologies, Say Panelists
Congress4 months ago
Senators Introduce Healthcare Broadband Bill as House Companion, Proposes $2 Billion Telehealth Expansion
Artificial Intelligence3 months ago
Brookings Panelists Emphasize Importance of Addressing Biases in Artificial Intelligence Technology
China5 months ago
China Expert Predicts that Nation’s Flawed Coronavirus Response Will Damage the Power of Chinese Communist Party
Infrastructure6 months ago
Broadband Breakfast Live Online Will Stream Every Wednesday at 12 Noon ET on ‘Broadband and the Coronavirus’
Education6 months ago
Online Elementary Education is No Spring Break for Parents Teaching from Home
Artificial Intelligence3 months ago
U.S. State Department Employing Artificial Intelligence Against COVID-19 Misinformation
Rural5 months ago
Why the Rural Digital Opportunity Fund is So Significant, and How to Succeed in Applying For RDOF