Media Law Prof Blog

Editor: Christine A. Corcos
Louisiana State Univ.

Monday, November 8, 2010

Comcast/NBCU Merger May Cost Consumers A Lot In Higher Fees

Via the Hollywood Reporter: estimated costs of the Comcast/NBCU merger are some 2.4 billion dollars to the consumer, because of higher monthly bills. These are the results of a study by the American Cable Association, which says the merger will be extremely taxing on the public if regulators don't step in.

The study, conducted by Dr. William Rogerson, professor of economics at Northwestern University, who served as the FCC's chief economist 1998-1999, estimates vertical harm of the deal at $1.43 billion and the horizontal harm at $1.14 billion over the next nine years.

Vertical harm stems from the combination of programming assets and distribution, which will permit Comcast-NBC Uni to raise the fees it charges for programming to other distributors, including ACA members, such as RCN and WOW!

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