Skip to main content

In an ideal world capitalism would create wealth for everyone and be a great finfcial model for a country to improve the lives of its citizens. However we don’t live in the ideal world, we live in the real one. Too often unfettered capitalism creates winners and losers and the gap between the two is getting wider. This in an email I received from President Robert D. Marcus Chairman and Chief Executive Officer of Time Warner Cable regarding the merger with Comcast.

“Above all, this merger will benefit you, our customers. Our two companies have been behind many of the innovative services that you enjoy every day—digital cable TV, high-speed Internet, DVRs, Video On Demand and WiFi in the home and on-the-go—to name just a few. The combined company will innovate faster and deploy even better products and features, including a superior video guide, faster Broadband Internet speeds and even more WiFi access points so you can access the Internet wherever you go.”

If the TWO companies were responsible for all of this innovation, why not leave them alone? In fact, these technical advancements came as a result of the competition between the TWO. A merger will only lead to less innovation and higher prices for the consumer as the choices for quality cable entertainment become less and less.

This is an example of why non-regulated capitalism leads to corporate profit growth and personal stagnation.

While there are some who feel the merger will benefit customers, most do not. Forbes says,

“…the deal will make video programming delivery even less responsive to legitimate consumer interests. The reason is that a vertically integrated company such as Comcast stifles the highly beneficial and naturally occurring competition between distributors and programmers. This vertical competition, often ignored or undervalued by economists and enforcers, is vital to ensuring that the system remains competitive.”

Others argue the deal does not even follow the government’s own guidelines for approving a merger. New York Magazine states the following,

“Basically, what all this complicated math boils down to is this: If the government evaluates the Comcast bid for Time Warner Cable using the same standards it used on the AT&T—T-Mobile deal, there’s simply no way the merger should be allowed to happen.”

This is from the lawsuit against the AT&T T-Mobile merger.

“AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market Thus, unless this acquisition is enjoined, customers of mobile wireless telecommunications services likely will face higher prices, less product variety and innovation, and poorer quality services due to reduced incentives to invest than would exist absent the merger.”

If this was the government’s position on the AT&T and T-Mobile merger what has changed in this merger attempt. The answer is the stakes are higher because Time Warner and Comcast are the two biggest providers in the market.

The evidence shows that this deal is bad for consumer pricing, competition, innovation, service, and violates the governments own antitrust laws. The only people who benefit from this merger are the people who stand to directly reap financial gain by merging the two companies. Stand up and say “NO” to the Time Warner and Comcast merger.

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site