Satellite TV providers likely to see Comcast deal as threat
Published: Friday, December 4, 2009 at 4:03 a.m.
Last Modified: Friday, December 4, 2009 at 4:03 a.m.
DENVER -- Satellite TV providers are likely to view Comcast's purchase of NBC Universal as a competitive threat and will lobby for regulatory denial of the deal.
Analysts said the proposed $13.75 billion deal for a controlling stake in NBC will give cable giant Comcast power in setting fees for NBC programming paid for by satellite rivals Dish Network and DirecTV.
"It really changes the lay of the land significantly for the satellite companies," said senior analyst Jimmy Schaeffler of communications research firm Carmel Group. "For them to do a deal with Comcast (to pay for NBC programming and cable channels) is going to be awkward. It's putting money into the pocket of a competitor."
The deal will give Comcast, the nation's largest cable TV operator, control of the NBC and Telemundo broadcast networks; 26 local TV stations; popular cable channels including CNBC, Bravo and Oxygen; the Universal Pictures movie studio and theme parks; and a share of Hulu, a supplier of online television programming.
Where Comcast previously had been aligned with competitors Dish and DirecTV in trying to negotiate low fees to carry networks and cable channels on their distribution systems, it now will be in a position to set some of those costs.
Colorado-based Dish Network declined to comment Thursday on the deal, but recent remarks by chief executive Charlie Ergen make the company's position clear.
"Obviously, we'd have concerns with anybody who owns programming and delivery distribution," Ergen said last month.
Ergen joked in the call that he may consider renting an extended-stay hotel room in Washington to be present for what is expected to be a monthslong process of hearings and testimony before Congress and federal regulatory agencies on the Comcast deal.DirecTV, controlled by John Malone of Colorado-based Liberty Media, said it is "evaluating" the transaction.
The deal "certainly creates significant media concentration," said Susan Eid, senior vice president of government affairs for DirecTV. "We expect the government will closely scrutinize this deal to protect consumers, choice and competition."
In a conference call Thursday, Comcast chief executive Brian Roberts said, "We take very serious the public-interest responsibilities." He said he expects to receive regulatory approval within nine to 12 months.
But receiving that approval could be a hurdle under the Obama administration, which will look more closely at antitrust concerns, Schaeffler said.
"In the George Bush White House, this would have flown right through," he said. "But in the Barack Obama White House, it's going to get a much closer look."
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