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Showing posts with the label consolidation

Comcast and Time Warner just can't control themselves

Comcast and Time Warner are awaiting regulatory responses to their application to merge and become the dominant player in cable television provision in the U.S. If permitted, the combined firm will control about 2/3rd of the broadband cable market and about 40% of the entire broadband market in the U.S. (which is used for both cable and the Internet). Independently, the two firms both have reputations for poor installation and repair services, poor billing and collection practices, high prices, and price increases above inflation levels. No one seriously believes their claims that the merger will be pro competitive, lead to more consumer choice, better service and lower prices. The companies have not been helping their case by appearing to be operations out of control when it comes to their customers.   In recent months customers seeking services have been kept on the phone for hours and forced to undergo forms of psychological abuse while they tried to get the changes they wished.   C

Ownership transparency is not enough to solve media performance gaps

Media ownership transparency has become a goal of media reform advocates on both sides of the Atlantic, but is often simplistically presented as a solution to problems in media performance. As I have shown in my research over time, it is not the form of ownership that matters, but the owners themselves. There are good and bad corporate owners, good and bad private owners, good and bad family owners, and good and bad foundation owners. And many owners whose media perform badly on issues of social service and public interest don’t care if the public knows who they are. This is not to oppose making it easier for the public to know who the owners are—in some cases (especially in southeast Europe) owners sometimes hide behind shell companies, investment firms holding their shares, and even individuals fronting for them. Gaining transparency may help identify consolidation and concentration for antitrust and pluralism analyses, but lifting those veils alone is not going to solve the issue th

Canadian Media Merger Creates High Market Power and Runs Against Concentration Trends Elsewhere

The proposed merger between Bell Canada Enterprises and Astral Media will shortly be considered by the Canadian Radio and Television Council (CTRC). The merged company will own 70 television and cable channels, more than 100 radio stations, and some of the country’s most popular websites. The combined company will serve nearly one-third of the national TV audience, more than 40 percent of the national cable TV audience, and about 30 percent of the nationwide radio audience. In addition the merger will increase Bell’s vertical integration and its power over distribution systems used by competitors. This later factor is particularly important because Canada lacks much of the regulatory control seen in Europe and the US over business practices of distribution systems that are also used by competing firms. The merger will benefit the two companies by giving them more market power and permitting efficiencies at the corporate and divisional levels. It is also likely to produce efficiencies

Contemporary Trends Change Magazine and Newspaper Printing Markets

The markets of magazine and newspaper printing firms are undergoing significant changes, reflecting on-going transformations in the customers they serve. Some of the changes have been under way for 2 decades with traditional printing companies morphing into printing service companies offering more profitable value-added services and products.   These included high-end specialized printing capabilities and services, database printing, and wide-ranging distribution services. At the same time, the increasing number of magazine titles, accompanied by lower average press runs, pushed the companies toward higher efficiency and acquisition of presses and systems designed for lower press runs. In this environment, many printers could not effectively compete and consolidation began creating large regional players in the industry. Shorter-term trends have also played havoc with the printing industry by killing off some magazine and newspaper titles, lowering the average number of pages printed b