The big news last week in the
tech world was the demise of the proposed merger of Comcast and Time Warner
Cable. These two media behemoths were planning to get hitched and the resulting
union would have formed a company that would serve about one half of all cable
and internet subscribers in the US.
When this marriage was
announced last year, pundits and regulators alike weighed in on the awesome
benefits or dire consumer peril (pick one) that would ensue. Ultimately the
dangers of allowing one company to control such a large and important part of
our economy doomed the deal. Rather than fight government regulators, the two
companies decided to walk away.
The issues surrounding the
planned merger will remain long after this ill-fated Wall Street union is
forgotten. Coming to grips with these issues will be imperative if we are to improve
infrastructures to support our digital economy.
Media companies, like Comcast
and Time Warner are trying to figure out you, the consumer. Once quite
predictable, the way you consume media and pay for media is changing faster
than most any company has been able to adapt. While the majority of TV viewers
still subscribe to traditional cable, that number continues to decrease. Companies
like Comcast and Time Warner have been struggling to decide if they want to be
in the programming business or the delivery business. The merger, if allowed,
would have enabled them to be in both.
When the merger was first
announced it came at an inopportune time. The FCC and media companies were
debating net neutrality. The decision
by the FCC was to treat internet service providers (ISPs) like phone companies,
requiring them to provide equal access (and speed) to all using their
networks. So owning the programming and
the network was less important.
It has been reported that
already other smaller media companies have approached Time Warner as a partner
and possible merger candidate. At a time when there is so much uncertainty in
consumer habits and technology advancement, size does matter. Large vertically
integrated media companies can afford to take chances and experiment.
In the meantime, sit back and
get ready for even more changes in the media landscape. Whether these changes will benefit the consumer
remains to be seen.