Wednesday, June 18, 2014

Possible Dancing Partners as Media and Telecom Converge

One of the factors that regulators might consider when examining the merits of the Comcast-Time Warner Cable and AT&T-DirecTV mergers, is it likely that other firms may consider it to be in their best interest to find acquisitions partners.   Here are some possibilities:


Firm
Possible Partner(s)
Reasoning
Concerns
Charter
Cox, Cablevision
Expand national footprint in MVPD and broadband to match the scale of a Comcast-TWC

Verizon
Charter, Cox, Cablevision
Expand national footprint in MVPD and broadband to match the scale of a Comcast-TWC, and expand product bundling to more consumers.  Bundles could include wireline and wireless telephony, video, and broadband
The number of MVPD and broadband competitors in some local markets declines by one, increasing both local and national concentration
Verizon
Dish
Greater size to negotiate more favorable programming deals.  Greater opportunity to bundle telephony, video, and data services
The number of MVPD competitors in some local markets declines by one, increasing both local and national concentration
Sprint or T-Mobile
MVPD (Charter, Cox, Cablevision)
Scope economies from product bundles of wireless with Pay-TV and broadband

Sprint or T-Mobile
Dish
Scope economies from product bundles of wireless with Pay-TV and broadband

Verizon
ABC or CBS or other content providers
Content is king
Foreclosure or discrimination of competitive, non-affiliated content providers.
Dish
ABC or CBS or other content providers
Content is king
Foreclosure or discrimination of competitive, non-affiliated content providers.
Content provider (ABC, CBS, Netflix, etc.)
Broadband provider (small or large)
Content is king.   Broadband (distribution) is queen.
Foreclosure or discrimination of competitive, non-affiliated content providers.

No comments:

Post a Comment