Why is Comcast buying NBC when the money could be spent upgrading its network?

JS80

Lifer
Oct 24, 2005
26,271
7
81
Content control .
NBC happens to own the majority stake in Hulu.

NBC has equal 27% stake with News Corp and Disney, and the rest owned by Private Equity and employees. Where are you getting your information?
 

The-Noid

Diamond Member
Nov 16, 2005
3,117
3
76
It's not that they don't have the bandwidth. It is a simple strategy really. 1% of the users using >90% of the bandwidth. Throttle those users and more money in their pockets.
 

Kadarin

Lifer
Nov 23, 2001
44,296
16
81
Why is Comcast buying NBC when the money could be spent upgrading its network?

Easy: Because Comcast feels that the return on the investment would be higher.
 

SunnyD

Belgian Waffler
Jan 2, 2001
32,674
146
106
www.neftastic.com
Let's see... make shitloads of money by selling and controlling content.... ORRRRR... spend shitloads of money upgrading their infrastructure only for you to bitch that their infrastructure isn't robust enough and churn over to a new ISP.

Gee... I can't honestly figure this one out either.
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
It's not that they don't have the bandwidth. It is a simple strategy really. 1% of the users using >90% of the bandwidth. Throttle those users and more money in their pockets.

Nope. More like better service for all subscribers.
 

Modelworks

Lifer
Feb 22, 2007
16,240
7
76
NBC has equal 27% stake with News Corp and Disney, and the rest owned by Private Equity and employees. Where are you getting your information?

NBC 39% of Hulu as of Nov 28, 2009 with other agreements including 'special considerations' from Disney. They also control content from the networks they own either in whole or in part, USA, SyFY, NBC , Lifetime, A&E, Hallmark channel, Oxygen, Bravo, Chiller, History, National Geographic , Weather channel.
 

techs

Lifer
Sep 26, 2000
28,559
4
0
If NBC makes a lot of money will Comcast lower cable bills?
Of course not.

If NBC loses a lot of money will Comcast increase cable bills?
Of course they will.

If Comcast wants to operate in the "free market" then they should open up their network to other cable operators. It's unfair that a government granted monoply should be able to use that monoply as leverage against free market companies.

How can we let Socialism run so amok in this country?

Also, will Comcast truly allow other television networks the same access and prices as Comcast owned NBC? Of course not. Only a total fool would believe that.
 

vhx

Golden Member
Jul 19, 2006
1,151
0
0
99.99% of their customers don't notice, why should they spend billions more to accommodate you?

99.99%? Yeah pull more numbers out of your ass. So 0.01% of users are causing so many problems they had to change their policies? That's a pretty shitty network they have. Clearly they are playing catchup on upgrading their network. It's pretty common for companies to sit on their ass and become complacent with little to no competition. Especially if they have a stranglehold on numerous broadband communities.
 
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her209

No Lifer
Oct 11, 2000
56,336
11
0
If NBC makes a lot of money will Comcast lower cable bills?
Of course not.

If NBC loses a lot of money will Comcast increase cable bills?
Of course they will.

If Comcast wants to operate in the "free market" then they should open up their network to other cable operators. It's unfair that a government granted monoply should be able to use that monoply as leverage against free market companies.

How can we let Socialism run so amok in this country?

Also, will Comcast truly allow other television networks the same access and prices as Comcast owned NBC? Of course not. Only a total fool would believe that.
Yeah, that really irks me.
 

JS80

Lifer
Oct 24, 2005
26,271
7
81
NBC 39% of Hulu as of Nov 28, 2009 with other agreements including 'special considerations' from Disney. They also control content from the networks they own either in whole or in part, USA, SyFY, NBC , Lifetime, A&E, Hallmark channel, Oxygen, Bravo, Chiller, History, National Geographic , Weather channel.

Even if we are to believe your magical 39% number, it is still not majority and they cannot just impose their will on Hulu management.
 
Mar 10, 2005
14,647
2
0
If NBC makes a lot of money will Comcast lower cable bills?
Of course not.

If NBC loses a lot of money will Comcast increase cable bills?
Of course they will.

If Comcast wants to operate in the "free market" then they should open up their network to other cable operators. It's unfair that a government granted monoply should be able to use that monoply as leverage against free market companies.

How can we let Socialism run so amok in this country?

Also, will Comcast truly allow other television networks the same access and prices as Comcast owned NBC? Of course not. Only a total fool would believe that.

first, there's the telecommunications act of 1996. it pretty much disagrees with all of what you are saying. however, it does set the stage for this disappointing situation.

secondly, why don't people freak out over similar conglomerates like timewarner, disney, sony or newscorp? out of that bunch, timewarner is obviously in the most similar situation, controlling content from beginning to end. where is the outcry? are you all secret AOL users?
 

Modelworks

Lifer
Feb 22, 2007
16,240
7
76
Even if we are to believe your magical 39% number, it is still not majority and they cannot just impose their will on Hulu management.

My number comes straight from wall street, call a broker who specializes in the entertainment market. GE has been planning this sell for months, slowly buying up competitors and increasing the value of the company for the sell. To control Hulu all they have to do is pull the content and start their own site. NBC can afford the loss, but ABC/disney cannot and NBC knows this so they will use that leverage to steer the company where they want it to go.

Comcast wanted NBC without other companies being able to influence the business, very similar to how they want to monopolize the way broadband comes to the home. Coincidence ?
 
Mar 10, 2005
14,647
2
0
Then talk to your local municipality. They're the ones responsible.

there is a lot of give-and-take when it comes to licenses. in massachusetts, cable licenses are handled individually with every town. in order for a cable operator like comcast, rcn or vz fios to raise the rates x% over the life of the contract, the town will demand something in return. these services will usually incur follow-up costs that the cable company will eat, too.
 

Modelworks

Lifer
Feb 22, 2007
16,240
7
76
first, there's the telecommunications act of 1996. it pretty much disagrees with all of what you are saying. however, it does set the stage for this disappointing situation.

secondly, why don't people freak out over similar conglomerates like timewarner, disney, sony or newscorp? out of that bunch, timewarner is obviously in the most similar situation, controlling content from beginning to end. where is the outcry? are you all secret AOL users?

Telecom Act of 1996 was a ruse by telco to get what they wanted. 2002 law changes effectively killed any competition.

People dislike time warner too. We just don't like the idea of another cable operator getting control of major media.
 

techs

Lifer
Sep 26, 2000
28,559
4
0
there is a lot of give-and-take when it comes to licenses. in massachusetts, cable licenses are handled individually with every town. in order for a cable operator like comcast, rcn or vz fios to raise the rates x% over the life of the contract, the town will demand something in return. these services will usually incur follow-up costs that the cable company will eat, too.

Actually there is not much give and take. My town tried to get Comcast to make some minor changes when the franchise renewal came up. Comcast essentially said screw you, the telecommunications act of 1996 and 2002 basically says only the Feds can force us to do anything. Comcast said that my town could only give the franchise to another company for a limited number of reasons, and that Comcast would fight them in court. And that as one town surrounded by other Comcast towns no other cable company would want to take over in our town.
It was a highly bitter contest. Comcast really said F.U. to my town.
It was at that time I found out that the cable companies almost never try to take over another companies franchise. I guess the law exempts them from collusion and they all have an unspoken agreement not to compete with each other.
Remember the bitter dispute between Cablevision and the New York Yankees network? Well, even NY City is not going to try and change franchisees since the law is so much in Cablevisions favor.
 
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