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Comcast Seeking Control of Both Pipes and Content?

techmuse writes "Reuters reports that Comcast may be attempting to use its huge cash reserves to purchase a large media content provider, such as Disney, Viacom, or Time Warner. This would result in Comcast controlling both the delivery mechanism for content, and the content itself. Potentially, it could limit access to content it owns to subscribers to its own services, thus shutting out competing services (where they still exist at all)."

41 of 241 comments (clear)

  1. Bad timing by DoofusOfDeath · · Score: 4, Insightful

    We can only hope that they're one Administration too late to pull it off.

    1. Re:Bad timing by Darkness404 · · Score: 4, Insightful

      Yah right, all they need to do is say that it will get them more money to either A) expand broadband or B) create more jobs, and you can bet that it will be accepted.

      --
      Taxation is legalized theft, no more, no less.
    2. Re:Bad timing by goombah99 · · Score: 5, Insightful

      Well, historically Democrats are in bed with the Hollywood types so it's not a certain thing that media owners might not see some love too.

      But besides that I blame this on google. Yes google and their don't be evil motto. Seems like there's this fixed amount of evil and if one company tries not to use evil then it just accumulates somewhere else.

      --
      Some drink at the fountain of knowledge. Others just gargle.
    3. Re:Bad timing by Fudge+Armadillo · · Score: 5, Interesting

      This would likely not cross into anti-trust territory. Besides, they have tried it before... http://money.cnn.com/2004/02/11/news/companies/comcast_disney/ Large cable companies are running out of small mom & pop providers to buy, and have amassed huge cash reserves, which they would like to find something to do with, one of which is to buy a large content provider, or possibly (though they keep denying the rumors), buy a wireless provider. Most of the wireless providers in the U.S. are too large to be taken over by even the largest cable companies, though.

      --
      "You be the captain, and I'll be no one." -- Kasey Chambers
    4. Re:Bad timing by girlintraining · · Score: 2, Insightful

      We can only hope that they're one Administration too late to pull it off.

      If you're counting on one man to save the world, you've been watching too much TV.

      --
      #fuckbeta #iamslashdot #dicemustdie
    5. Re:Bad timing by Stupendoussteve · · Score: 5, Interesting

      Or they could pass the savings on to the consumer, by maybe not jacking up their rates yet again.

      No wait, that would never happen. It's not like people are locked in to a single provider...

    6. Re:Bad timing by krou · · Score: 3, Insightful

      As Bill Hicks said, "I'll show you politics in America. Here it is, right here. 'I think the puppet on the right shares my beliefs.' 'I think the puppet on the left is more to my liking.' 'Hey, wait a minute, there's one guy holding out both puppets!'"

      --
      'If Christ had tweeted the sermon on the mount, it might have lasted until nightfall.' - John Perry Barlow
    7. Re:Bad timing by lambent · · Score: 5, Interesting

      what are you talking about? a very small percentage of people have the ability to choose between two, or even three providers! the system is obviously NOT flawed. /sarcasm

      i agree with your sentiment, they'll never actually LOWER prices. my experience with comcast is that they will raise prices by at least a dime every month, just to condition you to it.

    8. Re:Bad timing by iluvcapra · · Score: 5, Informative

      This would likely not cross into anti-trust territory.

      When the film industry was finally taken to court over their vertical integration in US v. Paramount in 1948 the large holding companies that owned the production arms and theaters were forced to divest. Note though, the FTC had begun investigating the flim business for their abuse of their integrated delivery system in 1938, and it took 10 years of court cases and broken consent degrees with the Justice department before the deed was finally done.

      Also note, the fact that Lowes owned MGM and Lowes Theaters, or that Paramount owned Paramount Studios and Publix Theaters was not sufficiently illegal for the court/FTC/Jusitce to take action. The real issue was that the holding companies used collusive formula deals and clearance and run arrangements to keep independent film producers from having a venue to show their own movies. The original complaints to the FTC were made by independent production companies that didn't own their own distro arm -- the first people to file suit were original United Artists partners and Sam Goldwyn, who sortof reminds of Mark Cuban minus the swearing.

      --
      Don't blame me, I voted for Baltar.
    9. Re:Bad timing by LostCluster · · Score: 2, Insightful

      Hollywood is a divided town politically. The actors tend to be liberal because they're artists, the execs tend to be conservative because they're in business.

    10. Re:Bad timing by Plaid+Phantom · · Score: 2, Insightful

      No, the real concern is that it will be the other way around. If you buy Comcast, you can only watch Disney movies. Which will be even worse for those with whom Comcast is their only available provider.

      --
      All comments are properties and trademarks of the voices in my head. Not like I'm gonna claim them.
    11. Re:Bad timing by Eil · · Score: 4, Interesting

      Large cable companies are running out of small mom & pop providers to buy, and have amassed huge cash reserves, which they would like to find something to do with,

      Oh, like upgrade their effing infrastructure? Months ago they were complaining about how much money they were losing from "high-bandwidth users," peer-to-peer applications, and streaming video sites. But now they have huge cash reserves?

      Kinda like how the RIAA companies always claim to be struggling after losing billions of dollars a year to piracy but turn around to their shareholders and say they're making more sales revenue than they ever have before.

    12. Re:Bad timing by meerling · · Score: 2, Insightful

      Hopefully the people that'll review that 'request' will remember all the previous times Comcast has said that and lied... Who am I kidding? They'll fall for it hook line and s(t)inker, just look at the bailouts they've done this year...

    13. Re:Bad timing by Nyeerrmm · · Score: 5, Insightful

      A competitive company making money by producing a product that people are willing to use/pay for without coercion is not a bad thing.

      However, a state-granted monopoly on common household services that makes obscene amounts of money by overcharging for said services and not developing the infrastructure is a bad thing. Internet services are more than a mere convenience in the modern world, and should be treated as a utility like power and water. Cable television is obviously less critical, although it should still be regulated more firmly since they are granted that monopoly. I'm a registered Republican and all for pro-business legislation and minimization of regulation where appropriate, but when there is no free market, you have to regulate it to protect consumers since they can't choose another option.

    14. Re:Bad timing by jaycagey · · Score: 4, Insightful

      Business != Conservative

      Just because people are in business does not mean they're conservative. In fact, one would expect liberal-dominated industries to attract business-minded liberals. A quick look at opensecrets.org shows that donations from the "TV/Music/Movies" category go overwhelmingly to the Democrats. This category represents employees of entertainment companies (rather than the artists who contract with them) so it would cover all those supposedly 'conservative' executives. In 2008, donations went 78% to Democrats and 22% to Republican. In 2004, at the height of the Republican tide, it was still 69% Dem - 30% Rep

      If you break it down to the sub-categories, it gets even more lopsided. The 2008 percentages (Democrat - Republican):

      The only subcategory that shows anything near parity is Commercial TV and Radio stations with 53 - 47. Presumably this includes all those local TV stations in 'flyover country'.

      So no, Hollywood is not divided politically, even among the non-artists it's overwhelmingly Democrat.

    15. Re:Bad timing by DJRumpy · · Score: 4, Informative

      Actually this administration is very much checking on anti-competitive industries unlike the previous administration. It's unlikely this sort of thing would get approved.

      http://www.washingtonpost.com/wp-dyn/content/article/2009/05/11/AR2009051101189.html

      http://www.techcrunch.com/2009/07/31/fcc-takes-on-apple-and-att-over-google-voice-rejection/

      It's already shining a light on many major companies like Google, AT&T, Apple, and Microsoft.

    16. Re:Bad timing by electrosoccertux · · Score: 2, Interesting

      With WiMax and 4G/LTE Networks deploying all over the place, we are starting to see real competition. Real unlimited data, just capped speeds (and very reasonable at that-- CLEAR has plans starting at $20/mo. and unlimited data @ 768/128).

      Free market solving in a way we never expected it to, please leave alone for now.

    17. Re:Bad timing by krou · · Score: 2, Informative

      Actually, my point was that both Democrats and Republicans are different factions of the same party, namely the Corporate party. Bill Hicks's description is quite apt and correct. Just because he's a comedian doesn't mean he wasn't right. The OP's claim that Comcast are one Administration too late implies that somehow Democrats are going to be any different, which they're not, except perhaps superficially.

      --
      'If Christ had tweeted the sermon on the mount, it might have lasted until nightfall.' - John Perry Barlow
  2. FCC! Now! by blackraven14250 · · Score: 2, Interesting

    Shouldn't there be FCC regulations against this potential nightmare scenario? If not, why not?

    1. Re:FCC! Now! by copponex · · Score: 5, Insightful

      The FCC has no interest in protecting individual rights or promoting a competitive market. They are there to sell off public assets to private corporations, and enforce rules and fines to ensure societal conformity to the morals of politically important voting blocs.

      If Comcast is prevented from acquiring someone due to federal interference, they will probably sue because they will claim that the free market is being tampered with. Just like any corporation, their definition of free market has nothing to do with the liberty of individuals to have access to a competitive market system. It has to do with the corporate right to be unbound by any rules and have the freedom to stifle competition and destroy the market for their own profit.

      To widen the market and to narrow the competition, is always the interest of the dealers. To widen the market may frequently be agreeable enough to the interest of the publick; but to narrow the competition must always be against it, and can serve only to enable the dealers, by raising their profits above what they naturally would be, to levy, for their own benefit, an absurd tax upon the rest of their fellow-citizens... It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have upon many occasions, both deceived and oppressed it. --Adam Smith

    2. Re:FCC! Now! by ScrewMaster · · Score: 3, Insightful

      If Comcast is prevented from acquiring someone due to federal interference, they will probably sue because they will claim that the free market is being tampered with.

      As the summary states, Comcast has an enormous stash of (not-so-hard-earned) cash. They're acting like squirrels: if they see food they don't need right away, they just shove it into a hole somewhere until they find a use for it. That probably should not be allowed: it's one thing to put something away for a rainy day, but when corporations end up so flush with cash that they can influence entire markets and ruthlessly suppress competition something is wrong. It also means they're probably significantly overcharging for their goods and services (as an ex-Comcast-down-to-the-depths-of-Hell subscriber I can attest to that.)

      Comcast's management also has other things in common with squirrels.

      --
      The higher the technology, the sharper that two-edged sword.
    3. Re:FCC! Now! by Dragonslicer · · Score: 4, Funny

      Comcast's management also has other things in common with squirrels.

      They always have nuts in their mouths?

  3. Re:Disturbing by Z00L00K · · Score: 2, Insightful

    We see this in many areas. Soon you will have to select brand of TV depending on cable operator too.

    Like it is today with some telecom operators - you may only select the phones THEY are offering, not the phone you want.

    --
    If builders built buildings the way programmers wrote programs, then the first woodpecker would destroy civilization.
  4. Its times like these... by Darkness404 · · Score: 3, Insightful

    Its times like these where the landowners and cities that own ground where Comcast's wires are going through should have leased the land and forced them to pay more or upgrade the infrastructure to keep up with the times to keep using it. With the pathetic condition of Comcast's network, they should use the money to make their network halfway reliable.

    --
    Taxation is legalized theft, no more, no less.
  5. I like this better the first time by Associate · · Score: 4, Interesting

    when it was called AOL.

    --
    Someone hates these cans.
    1. Re:I like this better the first time by vbraga · · Score: 4, Informative

      No, AOL bought Time Warner.

      In a stunning development, America Online Inc. announced plans to acquire Time Warner Inc. for roughly $182 billion in stock and debt Monday, creating a digital media powerhouse with the potential to reach every American in one form or another.

      Source

      --
      English is not my first language. Corrections and suggestions are welcome.
  6. If anything spells antitrust it's this by erroneus · · Score: 2, Interesting

    Using one market to leverage another? I'm not lawyer and I've been mistaken about this sort of thing before, but this really looks like a bad thing and that the justice department should weigh in on this sort of thing. I think sooner rather than later the ISPs need to be designated as common carriers and not allowed to play in certain arenas.

  7. Hacker ethic, arise once more. by girlintraining · · Score: 5, Insightful

    I think it's clear that our strength is technology and our weakness is the legal system. The legal system will always be in favor of those with deep pockets and have (at best) a tenuous grip on the ethical and moral considerations of the larger society. It's become so ineffective, insepid and innane as to become harmful to society -- Forget them. Laws do not govern moral conduct and never have. Integrity has no need of rules! But that's just a stop-gap. We need new technology -- and I think we need to go back to the basics to get there.

    We need to bring the internet back as a peer-to-peer exchange, but to do that we're going to need to create protocols that are specifically designed to resist attack and interference from intermediaries. The original concept of the internet was based on a flawed model that the network could be trusted to deliver packets from point A to point B using the same logic throughout; It was assumed that the network would be managed by a central authority. This hasn't been the case for awhile, and now we are seeing an increasing desire to bend and break the original standards to serve commercial interests. The protocols must be redesigned to only present the minimal amount of information necessary -- the source and destination, and the actual payload encrypted and made tamper-evident.

    To hell with demands that we have protocols with data exposed for "law enforcement", "national security" or "protecting the children" or any other specious argument. The ultimate expression of democracy is the free flow of information between citizens, and that's an ideal that comes ahead of all other considerations: We need to make a conscious and deliberate choice to accept the risks that come in embracing those early ideals, and not let the edge cases (terrorism, sexual predators, and elvis) sway us from the immense benefits of doing this. If the signal is to travel at all, it must travel freely.

    If this doesn't come to pass then our future as a democratic society is at an end. Democracy is more important to me (and I hope you as well) than my personal safety or material comforts. A free and open communication medium between all members of society must be a universal, because it's the only way to maximize our individual and collective potentials. This is another step in a slow descent into a life we do not want, and we won't notice until it's too late how much we've lost.

    --
    #fuckbeta #iamslashdot #dicemustdie
    1. Re:Hacker ethic, arise once more. by cpghost · · Score: 2, Informative

      The original concept of the internet was based on a flawed model that the network could be trusted to deliver packets from point A to point B using the same logic throughout; It was assumed that the network would be managed by a central authority.

      As a WAN admin with 20+ years of experience in NOCs, I beg to disagree. The Internet design is based on the assumption that network pipes and routers (and whole Autonomous Systems (AS)) will fail, and that traffic will route automatically around disruptions. As such, it is extremely robust and resilient. Of course, that applies to backbones, which are usually meshed. There is NO central authority controlling the Internet, there are only peering ASes that route traffic back and forth.

      The problem you're referring to has nothing to do with the Internet itself, but with telco monopolies owning the last mile to your home. Of course, this can be annoying, but that's not the Internet's fault. As long as you have only one uplink, you'll be at the mercy of your upstream provider. This has to do with you being at the edge of the network. It would be the same for an AS that would be foolish enough to peer with only one AS: no AS in their right mind does this. Acquire more links (e.g. to other upstream providers), and you'll realize that there is no central authority controlling the Net, only peers talking to each others. There's no need to change the design of the Internet protocols as they stand.

      --
      cpghost at Cordula's Web.
  8. AOL tried this and failed by alen · · Score: 2, Insightful

    Doesn't anyone remember the AOL/Time Warner merger? it was approximately 10 years ago now that it was announced. it was a dismal failure as technology changed in 2 years to make the whole thing worthless. The only media deal that can make sense is to buy the NFL, MLB, NASCAR or NBA because people will pay up for sports even in a recession. If the Disney channel suddenly becomes a premium channel I won't be getting it. even though i have a child.

    and with Verizon laying fiber along with AT&T were a few years away from another networking technology explosion that will make this deal obsolete.

  9. Re:Didn't AOL try this? by ZackSchil · · Score: 3, Insightful

    Only because AOL utterly failed to capitalize on their market dominance or prepare for the future. What did they think, dialup would last forever? That people would actually want their terrible service on top of broadband?

  10. Old news, surely by OscarGunther · · Score: 2, Interesting

    They've already tried to purchase Disney once before, as I recall. I think there's no question of anti-trust on this; we're talking a straightforward attempt at vertical integration within an industry. Comcast can even argue that Time Warner and Viacom have already set precedents for the acceptability of such a merger and that, in fact, Comcast needs to do such a deal to remain competitive.

  11. Re:Disturbing by darkpixel2k · · Score: 2, Informative

    Yeah? I have the right use purchase anything I want (within legal boundaries*). I have the right to purchase PhoneX instead of PhoneY. I have the right to use TelecomA instead of TelecomB. Why shouldn't I have the right to use my desired phone with my desired telecom?

    Because it's not your choice. Telecom is a bad example though because huge portions of their networks were built with taxpayer money--but most companies built up capital and decided to provide a service. They set the rules and price in which that service is offered. If you don't like the price and/or rules, don't buy it. If enough people don't buy it, they go out of business. If someone like you gets annoyed and decides to start a company with less rules and restrictions and/or better service, you'll win more customers. Of course it goes both ways, the other company can turn around and 'compete' with you by lowering their costs, providing better services, etc... It's called capitalism.

    --
    There's no place like ::1 (I've completed my transition to IPv6)
  12. Re:Disturbing by Fulcrum+of+Evil · · Score: 2, Insightful

    yah, these rights are firmly installed in the Constitution AND the Bible.

    They are part of anti-trust. Or do you expect the supreme document to detail every last thing that we do in this country? Seems excessive.

    --
    "We returned the General to El Salvador, or maybe Guatemala, it's difficult to tell from 10,000 feet"
  13. Re:Hah! Their timing couldn't be better by Munden · · Score: 5, Informative

    I believe nearly everything he said, perhaps you never listened. Track them yourself. http://www.politifact.com/truth-o-meter/promises/ While Obama made some overly optimistic promises it's pretty clear that congress and political fear mongering are limiting factors. Obama is not a genie. He has no magic wand. Real progress takes time.

  14. Er.. Time Warner... Hello ??? by brunes69 · · Score: 3, Insightful

    Has the poster never heard of Time Warner Cable? You know.. the nations second largest cable network and one of the largest ISPs in the US?

    Pretty sure Time Warner already owns pipes AND content... seeing how they still own AOL and about a dozen high-traffic websites, not to mention a ton of TV channels and network programs (each of which has substantial web content of course)

  15. Re:Hah! Their timing couldn't be better by Penguinoflight · · Score: 2, Insightful

    Somebody who hadn't heard of a scroll wheel, that's who.

    --
    "And we have seen and do testify that the Father sent the Son to be the Savior of the World"
    1 John 4:14
  16. Re:Hah! Their timing couldn't be better by hairyfeet · · Score: 2, Insightful

    Sadly short of armed insurrection you are both wasting your breath. Why? Because neither of you can compete with the legal bribery allowed to corporations. Hell have either of you seen a major law passed in 20+ years that wasn't bought and paid for? from rebuilding Iraq (Haliburton, who BTW moved rather than pay taxes on war profiteering) to copyright extensions "for the artists" and the DMCA (bought by your good friends at the *.A.A and a certain company with a mouse eared logo) our political system has become nothing more than a graft machine.

    Look around, don't like what you see? It is only gonna get WORSE from here on out. The bribes have gotten so big and the corporations so powerful that selling our their own country will be just another day at the office for our corrupt politicians. Thanks to "free trade" where we allowed our trading "partners" to prop their currency and do product dumping while poisoning their peasants we have lost our ability to pretty much manufacture anything but weapons, which will probably go next, these corrupt leaders now push for higher and higher education and a "services and IP" economy, while ignoring the fact that counterfeiting IP is a way of life for much of the third world, hell I could go on forever.

    The simple fact is if a multinational corporation goes to a politician and says 'fuck your country" while writing a check with a bunch of zeroes he WILL do it. I have no doubt that 30 years or less from now we will look like Brazil, with huge slums while the rich protect themselves with armed gated communities. You simply can't compete with legal bribery, and all this "Dem VS Repub" bullshit is just that: total bullshit. BOTH sides will fuck you over in a New York minute, the only difference is which asses they prefer to kiss. The Dems like the taste of *.A.A booty, while the Repubs get their bread buttered by the defense industry. NEITHER side gives a flying shit about you.

    --
    ACs don't waste your time replying, your posts are never seen by me.
  17. Re:Hah! Their timing couldn't be better by Shakrai · · Score: 2, Insightful

    I don't care much about guns...I'm not against them, they're just not an issue for me. I don't have one, I don't want one.

    If you care about the rest of your civil liberties you should care about the 2nd amendment. You don't have to own a firearm to realize the value of protecting the right of your fellow citizens to do the same. Put another way: If Government can infringe on the 2nd amendment then what's to stop it from infringing on the 1st, 4th or 5th amendments?

    Go take a look at the UK -- they started with gun "control" and have since neutered the right to keep silent, the right against self-incrimination and they keep expanding the length of time you can be held without being charged. If the people are willing to surrender one civil liberty why should the government assume that they won't surrender others?

    --
    I want peace on earth and goodwill toward man.
    We are the United States Government! We don't do that sort of thing.
  18. Re:Hah! Their timing couldn't be better by Timex · · Score: 2, Interesting

    Is Obama any better? Don't know yet, it takes more than a few months after jumping into the cesspool to find out if the new president is actually better, worse, or caught by the undertow.

    I'll help you out here and toss an apropos metaphor your way: "Out of the frying pan, into the fire" Let's see why:

    • Obama has been paying Perkins Coie something in the order of 2.3 million dollars since he announced his candidacy for president. This law firm is one of a few that have been defending Obama in the courts against people who are demanding more than a COLB as evidence of his place of birth. It is a fact that collections are still being accepted to pay for this.
    • How much do we really know about Obama? Not a lot, it seems.
      • We know that Senator McCain's long form and short form birth certificates were released when his citizenship was challenged during the presidential race. To date, we have a COLB from Obama, a document that is not accepted by Federal agencies to obtain so much as a passport.
      • We have Senator McCain's 1974 thesis from his days at the National War College. Obama refuses to allow anyone access to his Columbia thesis.
      • Despite having been president of Harvard Law Review, Matthew Franck noted in National Review Online, "A search of the HeinOnline database of law journals turns up exactly nothing credited to Obama in any law review anywhere at any time."

    The list goes on, but this should give you an idea of what we're up against.

    If you'd stop rolling your eyes into the back of your head and foaming at the mouth, maybe you can figure out the difference between counterproductive fear/hate mongering and constructive criticism and debate.

    Not all criticism of Obama is "foaming at the mouth". Personally, I'd be satisfied with acceptable evidence of his proof of citizenship, so I could move on. I don't have to like the sitting president (I didn't like Bill Clinton either, but I accept the fact that he was the legally-elected persident), but it's a lot easier to accept or deal with the antics of the president when one knows that he actually belongs in the office.

    And yes, this is the last post I will make to this article and thread. Rant all you want and spit into the wind to your hearts content, I will not respond.

    You're free to ignore this if you want. Last time I checked, that was your right. I hope that you'll at least think about the things I've mentioned.

    --
    When politicians are involved, everyone loses.
  19. Re:Hah! Their timing couldn't be better by geminidomino · · Score: 2, Interesting

    Pfft. That site looks far too forgiving to me. There are more than a few "compromises" that I'd call "broken." They just seem willing to give him the benefit of the doubt (they say as much on the justification for "signing statements").