Feb. 3 (Bloomberg) -- Comcast Corp.’s proposed takeover of NBC Universal would be a “negative thing” if it reduces access to programs for viewers and competitors, said Rick Boucher, head a U.S. House panel on communications.
“It’s very important that there not be any diminution of availability of that content for those who are current users of it,” Representative Boucher, a Virginia Democrat, said in an interview today.
Boucher is chairman of the House Subcommittee on Communications, Technology, and the Internet, one of two congressional panels scheduled to hear tomorrow from Comcast Chief Executive Officer Brian Roberts, NBC Universal CEO Jeff Zucker and critics of the merger. Comcast, the largest U.S. cable company, announced the deal on Dec. 3.
A “particular concern” is the continued availability of programs delivered over the Internet, Boucher said. “It would be a negative thing if it became less available than it is today.”
NBC Universal is an owner, along with Walt Disney Co. and News Corp., of the Hulu video Web site that shows NBC broadcast shows and other programming.
In part because of the ownership interest, the merged company “would have a powerful motive to starve competing online video sources” by withholding programming, the Consumer Federation of American and Free Press said in an analysis released Dec. 3.
Comcast Chief Operating Officer Stephen Burke said in a Dec. 3 call with investors that after the deal closes, “lots of broadcast content” would be available free on Hulu, and cable content that people pay for could be viewed over the Internet on a service available to Comcast subscribers.
Sports Programming
The merger will lead to higher prices for consumers, Matt Polka, CEO of the American Cable Association, said in a conference call today with reporters. Comcast could force smaller companies to carry expensive sports programming they don’t necessarily want, said Polka, whose Pittsburgh-based trade group represents small cable providers.
Polka said he doesn’t like the merger and expects regulators to approve it. The deal is before the Federal Communications Commission and the Department of Justice.
The deal “deserves scrutiny,” said Representative Cliff Stearns of Florida, the top Republican on the House subcommittee, in an e-mailed statement. “However, I do not see any reason not to allow this merger.”
Andrew Jay Schwartzman, a communications lawyer who is among witnesses for tomorrow’s hearings said the merger “will diminish the vibrancy of the marketplace of ideas, denying the public choice. That’s why we oppose it.”
Program ‘Migration’
Zucker and Roberts also are to appear before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights.
Independent stations affiliated with NBC are concerned that network programming may appear first on cable, Michael Fiorile, head of the NBC Television Affiliates Board, plans to tell Congress. The stations also want to prevent “migration” of the network’s sports and other programs from broadcast to cable channels, Fiorile said in testimony prepared for the House communications panel hearing tomorrow.
Comcast’s deal would give it control of General Electric Co.’s NBC Universal, which includes the NBC and Telemundo broadcast networks, a movie studio with a library of several thousand films, television stations, cable networks, a theme- park business and a stake in the Hulu online video service.
NBC-Owned Stations
Philadelphia-based Comcast would gain control of 10 NBC- owned stations. “Some 200” NBC stations are owned by independent businesses, said Fiorile, president of Dispatch Printing Co., a closely held company that owns NBC-affiliated WTHR in Indianapolis, Indiana.
Independent stations want “clear, specific, documented and enforceable conditions” about their relation with “the new Comcast-controlled NBC,” said Fiorile.
Roberts and Zucker said in joint testimony prepared for the House panel that the combined company “remains committed to continuing to provide free over-the-air television.”
Comcast “has strong incentives -- and the ability -- to invest in and grow the broadcast businesses it is acquiring, in partnership with the local affiliates,” Roberts and Zucker said.
Today the company reported fourth-quarter profit and sales today that beat analysts’ estimates, bolstered by customer additions and capital-spending cuts.
Comcast fell 32 cents, or 2 percent, to $15.97 at 4 p.m. New York time in Nasdaq Stock market trading.
To contact the reporter on this story: Todd Shields in Washington at tshields3@bloomberg.net
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