Tuesday, June 22, 2010

WGAW, Consumer Groups Warn of Comcast-NBCU 'Behemoth' (The Wrap)

Warning that the Comcast-NBCU combination creates a “behemoth,” [the WGA's letter] claimed, “The merged entity will exert a degree of market power unrivaled in our nation’s media history.” ...
The union pointed to Comcast’s previous citing as a benefit of the deal an ability “to ameliorate the negotiation friction” that has made it difficult to obtain content.

“The ‘negotiation friction’ between independent parties is what determines the fair market value of the content,” the union said. “Eliminating this friction will allow only one party to decide the value of content.” ...

Comments came in bulk on both sides of the issue. Indeed, while the WGAW expressed concern about the deal, the Directors Guild of America suggested the deal would produce jobs.
I might be wrong, but I think this is a disaster waiting to happen. AOL-Time Warner, anyone?

Read the full article here.

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