Friday, October 02, 2009

ComUniversal

As the speculation continues about what kind of relationship Comcast and NBC-U may agree upon (and obtain regulatory approval for), one of the questions raised is how the market, the government--and society--responds to control of content.

Even as the digital marketplace offers more ways to distrubute and acess content, combining Comcast's cable and VOD presence with NBC's cable properties, online eforts via Hulu, and broadcast as well, would create a content company of great leverage and multi-media reach.

The only comparable player could be NewsCorp with Fox broadcast, movie studio, cable and online properties, but without the cable system reach. Disney-ABC similalrly has broadcast, flim studio, cable chanel and online properties but does not have the cable system and VOD reach of Comcast.

Barriers to entry are low to achieve an online presence, but without resources to market an provide branded content, the apparent dominance of a combined Comcast and NBC-U should cause a bit of concern. Of course, every content producer still needs to offer programming people want and that is always a challenge no matter how big or small the company may be.

Comcast has pursued a venture like this for years and GE is in a financial place where receiving value for its NBC assets is more of an imperative, especially if Vivendi wants out of its investment.

With GE making it known that its NBC assets are on the block, even if Comcast and GE are unable to close a deal, the bidders should be out and NBC will likely find a new structure and home with someone.

Content remains king, but the king's home is on a floating and mobile foundation.

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