• by Wayne Friedman , December 3, 2007

Cable operators continue to be a hard focus at the Federal Communications Commission. On Friday, it voted to impose a 30% cap on the size of U.S. cable subscribers that any one multiple system cable operator can control, according to reports.

Fortunately for Comcast Corp.--the biggest U.S. cable operator at a 27% market share--neither the company or any other of its rivals would need to sell off systems to meet the new rule.

This effort comes two weeks earlier than expected, when commissioners had scheduled a meeting to move on a number of issues.

One issue is looking at the increase in product placement, which the FCC believes TV networks and stations need to address in terms of notifying viewers when it occurs.

Considering the top-level issues the FCC has been handling recently--cross-TV and newspaper ownership and a la carte cable programming--some wonder why the federal agency is tackling this seemingly low-level issue.

"It's miniscule," says Robert B. Nolan, Jr., partner of Halyard Capital, a New York-based private equity fund focusing on media and marketing services. "Why pick on this? [Product placement] is an implied arrangement."

Nolan wonders why product placement has become an issue in TV. It has existed in theatrical movies for decades.

Other analysts says the focus on product placement is in keeping with FCC chairman Kevin Martin's efforts for consumer protection, whatever the medium.