After the Merger
Post-Merger Issues
• Restrictions for consumers
The vertically integrated merger will lead to Comcast gaining a vast amount of programming including a massive collection of film titles and television shows along with their distribution services. Not only was the programming of a substantial amount but most of this programming would be of the type which will be preferred by most of the customers in the market. Therefore, this would lead to restrictions as the consumers will need to subscribe to the Comcast network to possess and watch this “must see” programming. Therefore, the Comcast subscribers would have an indistinct advantage over other subscribers. This would also lead to danger and later extinction of the local networks…show more content… By providing content through video on demand, day and date release of new programming, and TV Everywhere, Comcast will provide customers access to a vast amount of content to make the business successful by providing the customers with a unique experience. Comcast has set forward a way for the customers to have access to the content and programming through multiple channels. Not only multiple channels, but by owning a vast amount of content and high bargaining power, the post-merger entity has the power to gain access to new content easily. Apart from this, this would provide Comcast with high bargaining power to get the content makers and programmers to create more content for the consumers, therefore, generating more content for the subscribers to…show more content… These new players also had the potential to offer a lot of video streaming services over 2 channels – Internet and services that brought online content directly to the television. Post-merger, Comcast would possess a high amount of negotiating power because of the ownership of vast amount of desirable content. Because of the same, it would be able to charge its competitors and distributors a large premium for the content and programming. The players in the industry will have no choice but to comply with these prices asked by Comcast. In this way, Comcast would be able to use this merger to its advantage to push the rivals out of the industry by denying them the content or they would have to comply with the high prices of