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Time Warner & Comcast: Gentle Giant or Godzilla?
By: Emory Brown
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Mega-mergers have a way of disturbing people in the marketplace in a very crazy way. Long gone are the days of mega-monopolies in which workers were treated unfairly and customers were forced to pay outrageous prices. Yet, one thing I have to say about the government is that they keep an eye out for the corporate fat cats who may try to slip one over on us every once in a while.
 
A 45-billion-dollar deal and 29 million customers can either make Comcast and Time Warner one the best service providers in the country or a monster that Uncle Sam may have to behead. But it either way it goes, it’s going to be one hell of a brand.
 
I have to say, I particularly like Comcast. On Demand movies, music, my favorite televisions shows at a button’s reach. Time Warner has great content; they are the owners of the Looney Tunes franchise. Anyone who rolls with Bugs Bunny has to be brilliant.
 
Nevertheless, the merger of the two companies is causing a stir in the marketplace and has reached the chambers of Congress with much concern. From competitive pricing to forecasts of the merger pushing smaller content providers and other players out of the market, this deal has the making of a Wall Street movie if something actually runs afoul.
 
Democrats and Republicans alike have major concerns about the deal and have outlined their pros and cons. The cons are piling up. Some are worried that smaller programmers may not be able to sell video to cable operators. Others are concerned that Comcast/Time Warner Cable would have 30% of the cable market, at least 40% of the broadband market, 19 of the 20 biggest cable markets, and a major Spanish-language channel, as well as movies and television shows and sports programming… Can we say media and data behemoth?
 
This is making people uneasy, especially those who are supporting net neutrality, because 40% of the broadband market sounds like almost 50% control of the marketplace to me.  A few more strategic mergers, and presto! Market dominance. Plus, they are joining forces with Netflix to become a delivery vehicle for Netflix’s subscribers. But some see this as double dipping, because Comcast and Netflix charge consumers a price to view content. So is it double dipping or a great brand partnership?
 
Furthermore, Comcast executives are saying this is going to be the best deal for consumer prices. In a world of brands competing for market share day to day, I have to say that Comcast and Time Warner are going to create a mega-brand that will be remembered and will outshine many of its competitors. I think it’s a smart play for business as long as the brand continues to focus on providing great service for the people.  

 



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About the Author
Emory Brown is an award-winning creative director/writer whose mission is to spread the gospel of what great marketers can do when they put their heads together and work together for the greater good and not the bottom line. Working with many esteemed clients, his portfolio of work ranges in genre from conservative to ultra-modern including American Family Insurance, United Airlines, Mazda 6 and RX-8, Illinois Lottery, Tyson, Miller Genuine Draft, Nike Air Force 1, and Mercedes Benz, to name a few.  
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