Are you worried about the potential merger between Comcast and Time Warner cable? If yes, then you are not the only one. The Writers Guild of America has also taken issue with the merger and they have made it vocal.
The WGA has requested that the Federal Communications Commission not allow Comcast’s $45 billion dollar purchase of Time Warner Cable. The two companies are the largest cable providers in America. The guild has argued this merger would hurt competition in the market and would create a monopsony, which is a form of a monopoly in which one buyer interfaces with many sellers, and can dictate terms to its suppliers.
“Allowing the company to add eight million subscribers only increases it’s ability to limit competition” the guild said.
It is also been reported that if the deal were to go forward, Comcast would have control of 30% of the internet market. The Guild believes that with that much power, Comcast could use this to limit the influence other entertainment providers like Netflix. With Comcast not only being a cable and Internet provider, it is the parent company of NBCUniversal thus Comcast owns film studios and television channels, this leads some to question whether the company has too much influence in the media business.
“Comcast’s ability to blackout one-third of television viewers would force networks to agree to terms and rates set by Comcast, harming investment in programing” Stated the WGA.
The deal between Comcast and Time Warner Cable has yet to be approved by the FFC. The request filed by the WGA is available to read on the FCC’s website.