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Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

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Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#161
post #127

I must talk to all my libertarian friends now. I need to get explanation what free market means when right now my only options for network would be one ISP.

This has nothing to do with the free market. Both companies are government granted "natural" monopolies.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#162
post #154

Does it strike anyone else as curious that the two largest cable/internet providers merge, and it doesn't matter because they already don't compete? It might be a sign that something's odd if the premise is that there's no competition between identical products to harm in the first place.

No. I believe in the concept of a natural monopoly for most utilities though - Building outside plant is horrendously expensive - it to me makes as much sense to have multiple cable providers as it does multiple sets of power/telephone/water/sewer infrastructure. I'd even like to see a fewer wireless carriers (consider that each for carrier are spending billions of dollars to roll out what amount to essentially ident…

I used to install internet for Comcast. I appreciate the natural monopoly line of thought, but I would love to see solutions that worked around it.

I'm not an expert municipal telecom policy, so I'm interested in your perspective, but I would propose a finite number of lines that companies bid for.

There's definitely benefit from a natural monopoly in cable, but I'm not convinced they outweigh the costs of alternative solutions.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#164

If this merger goes thru, (and the AnitTrust people would have to be really asleep at the wheel for that) two things are certain: 1) Americans can expect some of the worst Cable price gouging they have ever seen 2) NetFlix, Amazon Prime et al will become really popular as a result of all the customers saying "FU ComcastWarner"

> 2) NetFlix, Amazon Prime et al will become really popular as a result of all the customers saying "FU ComcastWarner" I agree with your first point, but your second point doesn't follow. If anything, Comcast will price gouge Netflix out of business, and we'll be back to being stuck watching their awful "On Demand" instead. They can do this, because Comcast owns the content (NBC), the delivery mechanism for said cont…

They might want Netflix to survive in some form so as to avoid awaking the sleeping antitrust dogs. Same way as Microsoft found the Mac a useful argument against the "desktop monopoly" argument in the 90s.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#165
post #161
post #127

I must talk to all my libertarian friends now. I need to get explanation what free market means when right now my only options for network would be one ISP.

This has nothing to do with the free market. Both companies are government granted "natural" monopolies.

[deleted]

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#166
post #69

Earlier quoted context omitted.

> 2) NetFlix, Amazon Prime et al will become really popular as a result of all the customers saying "FU ComcastWarner" I agree with your first point, but your second point doesn't follow. If anything, Comcast will price gouge Netflix out of business, and we'll be back to being stuck watching their awful "On Demand" instead. They can do this, because Comcast owns the content (NBC), the delivery mechanism for said cont…

To play devil's advocate, what it means is that Comcast has the better business model. After all, that's why Apple and Samsung dominate the cellular industry. iApps running on iOS running on an iPhone using an Apple A7 offers the ability to optimize the user experience and integrate the layers that vendors doing things piecemeal can't match. If Netflix et al want to survive, they have to evolve from being mere middle…

Why precisely does Netflix need to "evolve"? I like Netflix just fine as it is, thank you very much. The totality of current online businesses are using "someone else's pipes", so framing that as a criticism strikes me as distinctly hollow.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#168

Earlier quoted context omitted.

note that Netflix runs on Amazon

I know. That's why Amazon is better positioned. They at least own the upstream infrastructure. Netflix is utterly dependent on three other industries, but is itself pretty easily replaceable. The had a first mover advantage in getting favorable content licensing deals before anyone thought it would matter, but that's fading fast as those deals are renegotiated. And its value add is totally fungible. People care about…

Except it's not really that dependent on Amazon - there are nearly perfect substitutes for every AWS service.

Comcast is different because it already operates as a monopoly in many areas, and it's trying to change the rules so that it can leverage that monopoly, to the detriment of everyone but themselves, and there's not really anything that anyone but the regulators can do about it.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#169

I can't wait until we finally get around to relegating broadband providers as common carriers. At the very least, we need a broadband version of Glass-Steagall, which forces ISPs, cable companies, and content providers to be separate entities. The current situation is laughably awful for consumers. I can't imagine a single informed customer actually supporting the status quo.

Not going to happen: http://en.wikipedia.org/wiki/National_Cable_%26_Telecommunic... Just wait till Aereo gets screwed in their Supreme Court case. Then we really will be. In fact no matter which way they rule in Aereo's case we are screwed. If they rule in favor of Aereo the content companies (Comcast owns NBC) will just start taking content "cable only".

Fantastic. Just imagine what we could with all the prime spectrum they'd be releasing.

Re: Comcast Acquiring Time Warner Cable In All Stock Deal Worth $45.2 Billion

#170
post #14

Earlier quoted context omitted.

It's a bit different in this situation. Comcast and Time Warner do not currently compete with each other.

Something tells me that if that's the linchpin for the deal going through, it's not an accident.

It's definitely not, these companies trade territory, and when an upstart that's not part of the collusion (like Verizon FIOS) comes in, they finally upgrade and cut prices on that part of their network to be competitive, so that it's not profitable for them to come in.
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