The proposed joint venture between Comcast Corporation and NBC Universal is a significant transaction in a significant market. The transaction will create a large media and distribution company, including the programming assets of both NBC, a leading national programmer, and Comcast, which owns several cable networks and some regional sports networks, and the distribution assets of NBC (namely, its owned-and-operated broadcast television stations). This new company will be majority-owned by Comcast, which in its own right is the nation�s largest distributor of multi-channel video programming, and Comcast could be in the position, within the next few years, to own 100% of the new joint venture. The size of the transaction is made more important by the markets in which the companies operate: the companies are more than just producers and distributors of entertainment and sports programming, which are of course important in their own rights, the companies also produce and distribute news and political programming. The mass media has long been considered a market important enough not only to draw scrutiny from antitrust authorities but also to justify the attention of a specialized regulator, using sector-specific regulation designed to achieve specific outcomes.
Commentaries and Op-Eds
In Defense of Data: Information and the Costs of Privacy, Policy & Internet Journal
The commercial use of information on the Internet has produced substantial benefits for consumers. But, as the use of information online has increased, so have concerns about privacy. This paper discusses how the use of individuals� information for commercial purposes affects consumers, and the implications of restricting information availability in the interest of privacy. It lays out a range of information benefits to consumers of the commercial use of online information, including targeted services, cost reductions through targeted advertising, efficient search engines, differential pricing and re-use of information. It argues that firms have incentives to satisfy customers� privacy preferences and that restrictions in the legitimate use of information may not lead to further privacy benefits. It discusses a number of policy proposals geared at maximizing privacy, arguing that benefits to consumers would be outweighed by the information costs.
Broadband Bombshell
The future of the Internet is mobile. Therefore it is not surprising that a main goal of the Federal Communications Commission’s long-awaited National Broadband Plan is to increase the availability of electromagnetic spectrum–“the oxygen of mobile broadband service,” as FCC Chairman Genachowski put it in a recent speech. What is surprising is that the FCC’s current recommendation focuses on broadcasters and gives short shrift to what is potentially the largest source of additional spectrum–which is now occupied by the federal government.
Increasing Spectrum for Broadband: What Are The Options?
Increasing Spectrum for Broadband: What Are The Options?
In Defense of Data: Information and the Costs of Privacy
The commercial use of information on the Internet has produced substantial benefits for consumers. But, as the use of information online has increased, so have concerns about privacy. This paper discusses how the use of individuals� information for commercial purposes affects consumers, and the implications of restricting information availability in the interest of privacy.
Instant Info Is a Two-Edged Sword
Bubbles have always been part of markets. The 17th century Dutch Tulip mania and the 18th century’s South Sea Bubble are part of capitalist folklore. Recently, there seems to be an increase in the number and severity of bubbles and crashes — Internet stock prices, housing prices and the stock market come to mind.
Managing the Network? Rethink Prices, not Net Neutrality
Wallsten, Scott. “Managing the Network? Rethink Prices, not Net Neutrality.” October 2007.
Googling Monopoly
Lenard, Thomas, Paul Rubin. “Googling ‘Monopoly.'” Wall Street Journal, August 2007.
Doing the Hustle at the FCC
Wallsten, Scott. “Doing the Hustle at the FCC.” July 2007.