Blogocentric Formulations

NBC Universal / Comcast Merger

I'm not sure if anyone is following this merger like I am (I work in the entertainment industry, so I kind of have to ), but I'm more than a little concerned about what this means for broadcasting. The United States government already decided that studios (who produce and distribute films) can't also own exhibitors (theaters and theater chains) because it created a monopoly. The Hollywood Antitrust Case of 1948 effectively put an end to the old Hollywood studio system, which allowed the studios to produce and distribute their movies to theaters that they either owned or partially owned, thus ensuring their movies would screen ahead of or instead of movies from other studios, companies and independent producers. The practice was declared unconstitutional, and studios can no longer own exhibitors... so smaller movies from other sources have an opportunity to be screened for audiences in an environment that allows for (theoretically) fair competition.

My question is... since NBC Universal is a provider of content, and Comcast is a broadcaster (i.e. the television version of an exhibitor), isn't this bordering on the same practice that was abolished for theatrical films in 1948? While there are more regulations and checks and balances now than there were in 1948, it still - in my mind - boils down to the same problem... the company that provides the programs is the same company that determines which programs make it onto the broadcast schedule. And while proponents of this merger promise that the companies will be run autonomously... when it comes to the balance sheet and the stock prices, won't there be a point where someone comes up with the bright idea of favoring their own programming in some way to increase or maintain profits and discourage competing content?

The continuing efforts of large companies to merge and create larger conglomerates truly concerns me. When larger companies bought into the Hollywood business (GE and NBC Universal... Time and Warner... Viacom and Paramount), the Hollywood business really stopped being about making a good movie or program (or even about making one with a decent return), and started being about how generate revenue for the corporation - which always comes down to equalizing the successes and failures into net profits on the financial reports. The entertainment industry has actually been in the black during this recession, but their parent companies overall have been down... which means the industry has faced the same layoffs and cost-cutting as everyone else, despite posting record profits.

If NBC Universal and Comcast merge and form one giant media conglomerate... I'm wondering how many more mergers there will be until one ginormous company is responsible for providing all of our media - movies, television, music, news, cell phone service... the whole shebang. Am I the only one that thinks the prospect of having one source for all our information is a scary thing?