News giant Bloomberg has filed a formal complaint with the Federal Communications Commission, accusing Comcast of violating conditions it agreed
to as part of its merger with NBC Universal, which created a $30 billion entertainment colossus.
Bloomberg argues that Comcast, the nation’s largest cable operator, has exiled its financial news television network to cable-dial Siberia, far away
from the “existing news neighborhoods” where it groups major news channels like MSNBC, CNBC, and Fox News.
Mega-Media consolidation now has dissenters from within? Hard to believe, isn't it?
Interestingly, once the purchase was authorized by the
FCC Commissioner who immediately
abandoned ship and went to lobby for Comcast and crew, those objecting to the idea became people behind the laugh curtain of "bizarre
conspiracy theories."
The reasoning behind putting Bloomberg News channel far away from all other news channels seems fairly obscure. But ultimately, the provisions about
how such 'decisions' are made manifest in programming lineups in cable is not:
Bloomberg’s complaint centers on a specific condition the FCC applied to the merger, which required that “if Comcast now or in the future
carries news and/or business news channels in a neighborhood, defined as placing a significant number or percentage of news and/or business news
channels substantially adjacent to one another in a system’s lineup, Comcast must carry all independent news and business news channels in that
neighborhood.”
To many this may seem a non-issue, until you consider how 'channel surfing' really works in the media consumers world. In the case of an event or
"news" report deemed important by the producers of Bloomberg News; their coverage doesn't stand a chance of being viewed when all the other news
channels are side-by-side at the other end of the cable spectrum.... it's the virtual equivalent to "location-location-location." And knowing
that, why would advertisers choose to advertise on Bloomberg's cable channel?
Of course, rather than simply move the channel to the "neighborhood"... Comcast is resisting saying that it doesn't have to. Which sort of
indicates what the mindset of their board and executive administration all along.
Bloomberg’s dispute with Comcast goes to the heart of objections raised by critics of the NBC Universal deal, who had argued that Comcast could
use its market power to favor its own channels to the disadvantage of rival programming, in this case Bloomberg TV.
For its part, Comcast says it “does not, and since the transaction has not, ‘neighborhooded’ channels on our systems.” The cable giant argues
that the FCC’s “neighborhooding” requirement would only apply if Comcast-NBCU actually did neighborhood news or business news channels in the
future, but since it does not at present, the FCC’s order approving the merger “does not support Bloomberg TV’s request.”
Thus, the outcome of this squabble will likely center on whether the FCC determines that Comcast does, in fact, neighborhood its channels or
not.
Of course, all of this was set out in the open when the purchase authorization was made by now Comcast lobbyist Meredith Attwell Baker.
For those of you interested in the real story behind those who bring us the (for entertainment only - legally speaking) news.
Are we learning yet?