Combined, the term used to describe Comcast and Time Warner merger was fitting.
Comcast is the United States largest cable television service provider and number two broadband service provider, and Time Warner is a prestigious multinational media company, and is the nation’s second-largest cable TV service, also for a large number of users with broadband services. Two beasts in TV and broadband services is a competitor, but at the beginning of last year, announced in the form of share swap merger and acquisitions worth up to 45 billion dollars.
How they come together?
Business for many years fighting opponents becoming one day suddenly announced to lay down their grievances to such enemies turn friends dog blood story always makes the imagination. But the marriage of Comcast and Time Warner, is not so much fall in love, more like in order to cope with the coming crisis and a big move.
United States cable television and fixed-line broadband services is not very fierce competition, many areas have only one TV and one or two broadband services access brands, tenants are often little choice. Business combinations is usually to gain market dominance, but for users that merging the two companies and has no effect: before the merger had no choice anyway, merge does not matter. Comcast claims that mergers can give users a better service, but Americans on this has just become the most unpopular 2014 United States scoff at the enterprises of the company’s commitment: competition for development, you merge will not bring about competition, said will benefit the user is fooled anyone?
Two giants merged’s real purpose is to deal with the rise of new media on the Internet: Comcast itself says Netflix, Apple TV online streaming services have begun to threaten the traditional TV media and services, it and Time Warner jointly can strengthen the competitiveness of enterprises in the new media market. Someday Americans will desert, cable TV and only watch video over the Internet, today the merging of the two traditional Giants continues to maintain dominance in the era you would like in the future.
Effect of marriage of Giants
Once the merge is successful, Comcast will control us-time Warner one-third of the pay TV market share and more than half of fixed broadband users. New company does not improve user service fees, it can strengthen the root causes of the media market control.
Consumers to watch content, they don’t really care about a video from TV or video sites. Which provide more and higher quality of content, it is easier to attract an audience to pay. Netflix, and Hulu, Apple TV which the core competitiveness of emerging streaming media services content library size, they are compared to traditional TV’s biggest disadvantage is unable to provide competitive service.
Comcast-Time Warner could use its huge number of users affect the upper reaches of the content producers, so that they give priority to the works of their cable TV and streaming media services. The Giants even pressing the television station refused to cooperate with Apple, Google and other Internet companies, Internet, allowing the latter access to TV broadcast rights. If the streaming service was unable to broadcast the traditional TV instead of cable TV is paper talk. Apple has been in negotiations with the major television stations tried to increase live TV for Apple TV and Comcast-Time Warner merger will give Apple a great deal of trouble.
This is not a good news for viewers: If several major television stations across the United States and the new Giants befriend the online media market, it’s hard to make a strong competitor to subvert the traditional cable TV service mode streaming service still exists as a cable TV client, rather than a substitute for the latter. To watch TV shows on the phone, Tablet PC, users have to first pay for traditional wired services online broadcasting in the image quality may be limited-and now Hulu video network was broadcast on American TV shows are locked in the 480p SD resolution.
Reactions to
In addition to Comcast and Time Warner, no one seems to agree with this merger. Workers Union worries after the merger the new company layoffs, consumers Union warned the merger would seriously damage the interests of audiences. Apple, Netflix and other Internet companies, of course, do not want their competitors become stronger, even conventional television stations mostly remained silent. In politics, six members of Congress called on the Government to stop the merge, now the Ministry of Justice and the final matters are likely to break the antitrust policy of Comcast and Time Warner jointly cause.
United States Wednesday, representatives of the two companies to the Ministry of Justice to justify mergers, Government’s consent. United States antitrust legislation of advanced countries in the field, many companies in the past because of antitrust fines or even split. External analysis of the case by the Justice Department audit is very low, because the combined business volume and market share is too big, is more likely to undermine competition and harm consumers. Fossil iPhone case FOSSIL iPhone 5
United States is the world’s largest producer and consumer of entertainment products. While Time Warner and Comcast’s TV and Internet services are only for United States native, but they will slow down if it is successfully merged Apple, Netflix and other online media service provider’s rate of expansion, and the world-wide Internet alternative to traditional TV services process; from this perspective, the United States Department of Justice final decision of great significance. Of course, as consumers, we hope that this noble marriage fell through, so less of a potential threat to global Internet media industry development. Traditional TVs dominate the entertainment market for decades, has retired to the seat time.
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