Welcome!

Blog Feed Post

Comcast’s Final NBCU Stake: Vertical Integration Complete

BROADBAND CONVERGENT - Business News Broadband-Mobile-Cable-Telecom Markets

NBC-Universal-Comcast (NBC Building Sign)

Comcast’s Final NBCU Stake: Vertical Integration CompleteComcast’s acquired the final stake in NBCU creating a vertical integration of both content and delivery of news and entertainment to U.S. consumers. Divestiture as a remedy should be viewed as a real possibility for Comcast now as its market power moves to dominate competitors. Although Wall Street analysts gave this deal a “thumbs up”, they continue to deny the overlying impact of how market dynamics will change as a result.

Inherently, the deal puts Comcast on a vertically integrated path of controlling both content and delivery of consumer news and entertainment. That should trigger a tipping point of more scrutiny from regulators as the giant moves to eliminate competition by gaining more control of external costs and distribution metrics.

Cable TV and/or Broadband Divestiture Seems Reasonable

It should be reasonable that with market domination of broadband, cable TV and content within the U.S., creating a clear business advantage, might inevitably raise more questions about the giant’s intentions toward competitors. Controlling those three markets, distinctly integrated with one another vertically, can only be construed as dangerous to consumer interests, as well as future market competition. Therefore U.S. regulators must take a harder look at how this recent transaction can benefit the public. Divesting is an answer that seems reasonable for Comcast whether it be its Cable TV Business or Broadband holdings.

Prevention of Monopoly

“There are times when companies are compelled to divest because of legal issues. In order to maintain fair trade and prevent monopolistic practices, anti-trust commissions in various countries mandate divestment. In the United States, the government agency responsible for determining if a company needs to sell or release its non-core asset is the Federal Trade Commission (FTC).” Read more: http://www.finweb.com/investing/6-reasons-to-divest.html#ixzz2Ku7dKf3p

 
Comcast Subscriber Metrics        

Customers

Net Adds

(in thousands)    

YE11

   

YE12

   

4Q11

   

4Q12

   

2011

     

2012

 
Video Customers    

22,331

   

21,995

   

(17

)    

(7

)    

(459

)    

(336

)
High-Speed Internet Customers    

18,144

   

19,367

   

336

     

341

     

1,159

     

1,223

 
Voice Customers    

9,342

   

9,955

   

146

     

168

     

732

     

613

 
Combined Video, HSI and Voice Customers

49,817

   

51,317

465

   

503

   

1,432

   

1,500

See (Comcast Reports 4th Quarter and Year-End 2012 Results)

By far Comcast has more triple play subscribers than any of its cable counterparts. Direct TV and Dish Network are primarily video distributors lacking the vertical integration to compete effectively with a Comcast. Let us not make a mistake of believing there is not a clear market advantage. Clearly, having large content reserves, a mega distribution pipeline for broadband and cable TV is a disadvantage for any competitor.

Top 25 Multi-channel Video Distributors September 2012

Rank

MSO

BasicVideoSubscribers

1

Comcast Corporation

22,002,000

2

DirecTV

19,981,000

3

Dish Network Corporation

14,042,000

4

Time Warner Cable, Inc.

12,344,000

5

Cox Communications, Inc.1

4,595,000

6

Verizon Communications, Inc.

4,592,000

7

AT&T, Inc.

4,344,000

 

A Lack of Competition

This multi-channel video distributor list in the U.S. indicates the divide in sheer video customer domination. Although Satellite DBS customers are most closely aligned with Comcast numbers, there is a lack of overlap in various markets. Understandably, consumers are not left with clear choices in every market, nor are those consumers advantaged with a DBS delivered broadband competitor in most markets.

As can be seen in this chart the potential competitors of Comcast via both Verizon and AT&T, have long ago began to discontinue their direct competition efforts due to the inherent costs of building new infrastructure. Although Google Fiber and FreedomPoP have made insignificant in-roads in a few markets, the majority of content, broadband, and video distributors remains non-existent. The true danger here is the scope of a Comcast vertically integrated control of such a large market area. The advantage is clear in that controlling both internal and external costs and distribution metrics represents and unfair market distinction.

Image via CNNMoney

Comcast’s Final NBCU Stake: Vertical Integration Complete

Read the original blog entry...

More Stories By Leonard Grace

Leonard Grace is the founder of Broadband Convergent, an industry leader tech news and analysis for Broadband, Cable, Mobile, Wireless, and Telecom markets providing strategic direction, business trending, sprinkled with lots of opinion. Technology executives must focus on key business indicators with fast, effective and researched analytics to provide leading edge decisions that propel their organizations ahead of the competition. Broadband Convergent researches the latest trends, strategy, and analysis to deliver the results executives and managers depend on to make strategic business decisions. Whether it is (to-market-strategy), the latest competitive advantage, leading edge technology or legislative updates; Broadband Convergent is on top of intelligence gathering and reporting to make industry leaders comfortable with making decisions based on our findings. Our company is a leader in providing fast, efficient, and economical insights into competitive markets, business strategies, market trends and the future outlook of the legislative landscape. Leonard has produced 250+ highly researched articles providing a unique perspective on current Broadband issues including Cable, Mobile, Wireless and Telecom sectors. His insights dig down to find the why’s and why-not’s of industry decisions and how those effect the commerce of broadband.

Latest Stories
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
Sanjeev Sharma Joins June 5-7, 2018 @DevOpsSummit at @Cloud Expo New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.