By Doug Porter
The pending merger of Time-Warner Cable and Comcast has made headlines everywhere today. Sadly, most of the coverage is missing the mark when it comes to the real significance of the deal. The tone, if not the actual content of the reportage, generally suggests that there is concern about creation of a cable monopoly.
The #1 and # 2 cable TV providers compete head-to-head in very few markets. In fact, when it comes to cable TV, competition is a rarity. In San Diego it was decided long ago to be in the ‘public interest’ to split the county into north and south region cable providers. These companies are more like a cartel than they are competitors.
So the proposed deal won’t effect the actual connection people use or, for the time being, its cost. The combination of Comcast-TWC will end up with about 30 million subscribers, but that number is less than the percentage (roughly 33%) of the overall pay TV market the FCC is likely to worry about. Non-cable providers, like AT&T and Dish Network will keep enough share of the market for the government and the industry to say there is adequate “competition”. [Read more…]






