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Comcast, NBC Merger Will Cost Consumers More

  • Adweek, Tuesday, November 9, 2010 12:34 AM
That consumer cable bills will continue to climb is a sure bet. If regulators approve Comcast's control of NBC Universal, it will cost consumers even more -- $2.4 billion more over the next nine years. That's according to a study released today by the American Cable Association, which represents 900 small and medium-size independent cable companies and wants conditions put on the $30 billion transaction.

Dr. William Rogerson, a professor of economics at Northwestern University, who served as the FCC's chief economist from 1998-99, conducted the research. He found Comcast-NBCU could raise programming fees significantly above levels the two would be able to command if they were separate and independent companies. According to Rogerson, the cost to consumers post-transaction is 10 times greater than the quantifiable consumer benefit of $204 million claimed by Comcast and NBCU.

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