Comcast Acquisition Of Time Warner A Strategic Move Against Cord Cutters - HotHardware
Comcast Acquisition Of Time Warner A Strategic Move Against Cord Cutters

Comcast Acquisition Of Time Warner A Strategic Move Against Cord Cutters

As we’ve all had some time to digest the potential reality of a Comcast-Time Warner Cable merger, there’s some thought out there that the two giants could be making a move specifically designed to target cord-cutters, those brave souls who’ve given the one-finger salute to traditional pay-TV providers and their steep fees and incommensurate product.

Farhad Manjdo of the New York Times writes that the new, bigger Comcast can recoup any lost cable customers by ensuring that it provides them their Internet service. So one way or another, they get to decide how much customers in its markets pay for cable and/or Internet access.

Comcast cable box
Image Source: Flickr (Mr. T in DC)

From a business perspective, that obviously makes sense. Comcast can just mark up any Internet-only plans and offer a TV-and-Internet bundle that doesn’t cost much more. If you’re only paying an extra $10, $20, or $30 a month for a pile of cable channels, it sounds like a pretty good deal.

To be clear, the consumer doesn’t win here; cord-cutters would be gouged by higher ISP prices, and those who bundle would likely be paying roughly the same amount. It’s just a matter of re-jiggering the pricing structure.

Worse, Comcast could also attack streaming services like Netflix, Hulu, Amazon, and others by throttling their speeds and forcing them to raise their fees to get that speed back--which is precisely the sort of thing that net neutrality is designed to prevent. (If you recall, net neutrality rules suffered a setback just last month, although the FCC is fighting back.)

Comcast would be able to easily get away with this because there’s so little competition among ISPs and cable providers. Combining the two largest cable companies in the U.S. will only make a bad situation that much worse for consumers. Here’s hoping regulatory agencies will agree that this merger is a terrible idea for consumers and nix the deal.
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I don't want cable tv just wide band

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Anti trust laws should have prevented this monopoly.

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Here's an idea. As a condition of approval all markets currently served by both companies must give up their cable monopoly as well as make the entire plant from headend to customer available to competitors at a wholesale rate just as the telecoms were forced to do when Ma Bell was broken up. This could foster a whole new batch of start ups and bring jobs with it. Every smart company will tell you that competition is good for business as well as customers. Lets see if Comcast is a smart company.

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Might be forced to do Comcast Xfinity streaming and not NetFlix unless you get a VPN account. http://arstechnica.com/information-technology/2014/02/netflix-slow-on-verizon-or-comcast-a-vpn-might-speed-up-that-video/

 

its comcastic.

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