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Jeff Chester on Comcast-Walt Disney Merger

hydrarchist writes:

Comcast-Disney Merger Should Be Rejected By Bush Administration/FCC

Proposed Mega-Media Monster Monopoly Direct Result of Powell Policies

February 11, 2004

Contact: Jeff Chester, Center for Digital Democracy (202) 494-7100; (301) 270-3938

Washington, DC: Comcast's proposed takeover of the Walt Disney Company (ABC) is a deal that should be unacceptable to federal officials, who are entrusted with protecting the public interest. A Comcast-Disney combine would permit one entity to dominate cable system distribution in the largest markets in the US (8 out of 10 top markets); control a broadcast TV network and the dozens--if not hundreds--of digital channels from its owned-and-affiliated stations; own cable content including ESPN, Toon, Disney, Golf, E, and TV One; as well as remain the major broadband ISP. Given Microsoft's investment in Comcast and its new relation with Disney, there are also implications for every desktop and set-top. Comcast has opposed any federal policy that would ensure that the broadband Internet operates on an open and nondiscriminatory basis.

It's clear that Brian Roberts knows no limits to his media ownership ambitions, having already swallowed AT&T Broadband (which in turn had gobbled up both TCI and MediaOne). More importantly, Roberts and Comcast fail to appreciate that such heightened media consolidation in cable, broadcast, and online distribution and content is a threat to American democracy. That Comcast would make the announcement the same day that a federal Court of Appeals in Philadelphia is holding a crucial hearing on new FCC media ownership policies suggests that they are out of touch with how millions of Americans--who opposed the recent ownership changes--feel about further media consolidation.

This deal is the direct legacy of Michael Powell and the Bush FCC. Powell has supported further consolidation, signaling to Comcast that such a deal is possible. Powell could have sought to restore the broadcast-cable cross-ownership rule (something his fellow Commissioner Michael Copps urged). Finally, it should come as no surprise that Comcast's Roberts is backing Pres. Bush for re-election and that the company's president, Stephen Burke, is a $100,000-plus "Pioneer" for Bush-Cheney. ( Broadcasting and Cable , 2/9/04). Such support is designed to ensure that the Bush Administration doesn't craft rules that prevent this kind of proposed merger, or force Comcast to operate its cable and online systems under public interest safeguards.

In announcing its merger plans, Comcast made clear its low regard for ABC News as yet another media "product," merely one of Disney's "many wonderful brands." But our democracy demands more of its journalists than brand names and market clout. We must protect both the integrity of the news media and the diversity of expression that is central to our First Amendment right to "the widest possible dissemination of information from diverse and antagonistic sources" (in the words of the Supreme Court).

As the largest cable operator and broadband Internet provider in the nation, Comcast is already a formidable presence in the media landscape. Its intention to add the Disney empire to its already considerable holdings is clear indication that the "Age of Expansion" must be brought to a close. Washington regulators must reject this proposed merger, and Congress must act swiftly to restore the broadcast-cable cross-ownership rule, which would have prevented this ill-considered union from being proposed in the first place."