 (Source: NBC Universal)
The possible Comcast acquisition of NBC has analysts and bloggers writing up a storm
If Comcast is successful in its
attempt to purchase
a 51% share of NBC Universal, free online TV content may become
harder to view.
Hulu, co-owned by NBC, would then become
Comcast's property, in which the company would likely try to monetize
its content as soon as possible some analysts believe. The top
online TV show site also is owned by Walt Disney and News Corp. with
Comcast seeking the 51% share from GE.
"We suspect
Comcast believes it needs content
to protect its landline distribution platform," Pali
Research analyst Richard Greenfield wrote in a research report.
"It wants to mitigate the risk of becoming that scary 'dumb'
pipe."
To help go online, Comcast is currently testing
the TV Everywhere, a new service aimed at allowing subscribers to
watch TV episodes on the internet.
Comcast's NBC
acquisition will also give the Philadelphia-based company access to
its cable networks, movie studio, online presence, and theme
park.
Analysts are cautious as it's possible online video and
cable TV competition would be reduced if NBC is successfully acquired
by Comcast. The acquisition may draw FCC attention, even though
federal regulators may be unlikely to get involved due to the current
state of online video. Notably, NBC owns cable channels Bravo,
USA Network and others, and it's possible the FCC may not like if the
company's national broadcast network is combined.
"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation
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