Yes the FCC turned its head and allowed the Comcast Universal Merger but what is the real interest behind the scenes?
Content Delivery Companies (aka Comcast, Time Warner, Verizon) realized some time ago that they are a “PIPE PROVIDER”. Meaning that they were the pipe to get the content. Not being satisfied with that, they wanted to own the content they were providing since they had a monopoly of delivery to a specific geographic area.
So in order to fund this new monopoly mission, they had increased rates and rate configurations to “make a killing” and spend those profits on buying the content they were providing.
Now to anyone who argues for free markets, this is corporate subsidies in action.
How?
Comcast argued for years that if they did not package channels they way they do, Disney and other channels would fail as nobody would pay for them. Well isn’t that what free markets do?
So if nobody would pay for Japanese Golf Spoke in Spanish I have to pay for it to watch the NFL?
Enough said on that.
So now that Comcast Universal and Time Warner owns most of the content that will be provided to any and all subscribers (this would include NEWS & Movies/Entertainment), Do you really trust these company’s with their track record.
Even Ted Turner who started this process got screwed by Time Warner in their deal as there is just to much money in this and whenever there is to much money in it, the average joe takes the hit for it. In other words, it is far from a win-win situation.
That being said, who could possibley stand-up to one of these giants for competition as they control the pipe and you must go through them to make any money on your content and I’m sure your rate will be higher than theirs and a higher cost to the subscriber if you can make it that far.
So now what?
Enter the internet. Providers can be anywhere in the world and can provide content on demand anytime you want it but with one big hitch.
Comcast and Time Warner have nearly as much control of the Internet it provides the same customers. They “choke off/limit speed/quality of service that makes streaming video a problem for those that would use it more than a few times a week.
While Comcast and Time Warner have been so busy buying content, a Big deal is inevitable now with Verizon if they are to compete. For the record, Verizon has spent much of their profits on infrastructure in the form of fiber optics to deliver the best internet and TV experience available. I personally have other issues with the company but the for-mentioned is valid.
So, the only hope is for the Internet to open the gates of content to allow content other than what is owned by the pipe providers to be seen. We can see the beginning of this now with YouTube and others.
Problem here is will the pipe providers (Comcast, Time Warner,Verzion) have control of the largest open interface the world has yet to see.
Now that Comcast has the content they want, they wish to kill any measure that would restrict them from giving poor service to anyone that would compete with them via the internet that they also provide to the same customers. So the FCC’s “Net Neutrality rules” and PBS are on assault by the Comcast lobbyist and Congressional Republicans under the premise of budget cuts.
Some good reading:
DailyFinance – Home Media Magazine – Net Neutrality rules being assaulted – Do Something About It