James Delahunty
5 Oct 2010 0:40
The Federal Communications Commission (FCC) has written to both Comcast Corp. and NBC Universal to request more information about a proposed deal that would see Comcast acquiring a controlling sake in the large media company.
The letter to Comcast questions the cable operator's distribution agreements for popular cable channels that it already owns, such as E! Entertainment, the Golf Channel and Versus. It also is asking for details about Comcast's channel line-ups and for information on how it decides on programming to carry.
The letter to NBC Universal requests information about existing agreements with satellite, cable and phone companies to carry some NBC channels including Oxygen and local NBC and Telemundo stations.
Comcast is seeking approval from the FCC and the Justice Department to acquire a 51 percent stake in NBC Universal, which has sparked some fears among competitors and public interest groups. The deal would hand Comcast control over the NBC and Telemundo networks, as well as some cable channels including CNBC, Bravo and Oxygen.
Additionally, Comcast would gain control of the Universal Pictures studio and a share in the Hulu online video service. Satellite companies and cable rivals fear Comcast could use its control over NBC Universal to push up prices for must-have programming or to withhold it altogether from competitors.
Public interest groups are worried that Comcast could withhold programming from the Internet, stifling the growth of the online market, or restrict access to online content to cable subscribers.