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Comcast And Time Warner Cable Merger Case Study

661 Words3 Pages

Comcast and Time Warner Cable have recently struck a deal. The two cable companies are waiting for their merger application to be approved by the Federal Communications Commission, the government agency that regulates communications through the media. Both Comcast and Time Warner claim that this merger is more to the benefit of their consumers, increasing services provided by the companies. However, this “merger” is nothing more than a takeover by Comcast, the company trying to increase the monopoly it is becoming.

Comcast appears outright evil. They have sunk their fangs into the only company that may come close to matching their quantity of consumers. David Cohen, the vice president of Comcast, says that this merger would not affect their customers’ choice. However, this combination will give Comcast access of 19 out of 20 states that are at the top …show more content…

The two firms combined will be the country’s dominant cable and Internet provider. Cohen’s rebuttal to the negative feedback of this news was that Comcast already has competition to worry about such as Amazon, Netflix, and Apple. Cohen is right to the extent that these corporations are giving Comcast some form of competition. But the competition isn’t remotely as effective as having a newly merged company with control of roughly 40 percent of the high-speed broadband Internet market. Cohen mentioned 3 companies that don’t even dabble in the cable business at the current time. Yes, Netflix looks to become a premium channel and have the successful model of HBO. However, both Netflix and Amazon are primarily on the Internet and focus on their streaming and renting service. Apple, on the other hand, focuses mainly on their gadgets that improve the television experience. It is certainly not hurting Comcast sales. If anything, Apple increases Comcast sales in some ways, especially when it comes to their gadgets that require Internet to get the full

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Lawmakers now claim that they are looking out for the consumers’ and competitors’ best interests, so as not to hinder any competition or new innovations. Others have weighed in on the debate such as Senator David Perdue, who claimed that this merger is simply an example of capitalism. President-elect Donald Trump claims that this type of merger will be blocked. Lastly, consumer groups have rejected the portrayals of AT&T and Time Warner as being weaker rivals, claiming that the merger of these two companies will create a powerhouse that every network and cable company will need to compete and negotiate with, all while pushing out smaller streaming services such as Sling TV and Hulu. Consumer groups ultimately fear that this merger will extinguish new

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