[Infowarrior] - FCC approves Comcast and NBC joint venture

[Richard Forno]

FCC approves Comcast and NBC joint venture

By Cecilia Kang

The Federal Communications Commission on Tuesday approved Comcast's acquisition of NBC Universal, allowing for a joint venture that puts a vast library of television shows and movies under the control of the nation's biggest cable and broadband Internet service provider.

Together, the companies have 16.7 million broadband subscribers, about 23 million cable customer and dozens of lucrative channels such as USA, Bravo, MSNBC and CNBC.

In a 4-to-1 vote, the FCC determined the deal was in the nation's public interest and assigned a number of conditions to the venture to ensure that Comcast shares content with cable competitors and gives other networks fair access to its customers.

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Specifically, the FCC required Comcast offer Internet versions of its content -- such as "Saturday Night Live" and "Top Chef" -- to "bona fide" online distributors of video at the same terms and conditions it gives to cable and satellite providers. Those distributors aren't clearly defined but could include businesses such as Apple TV and YouTube. Comcast would also have to offer those shows to online distributors who have partnered with NBC's competitors, so as not to retaliate against competition.

The FCC did not require the venture divest its stake in Hulu, a condition proposed by lawmakers such as Senator Herb Kohl (D-Wisc.). Hulu is jointly owned by NBC, News Corp. and the Walt Disney Company. But the FCC said Comcast can't "exercise corporate control over or unreasonably withhold programming from Hulu."

The agency also required Comcast to offer broadband Internet access as a stand-alone service at "reasonable prices" and with "sufficient bandwidth" so customers can choose to watch video online without having to also subscribe to cable television.

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http://voices.washingtonpost.com/posttech/2011/01/the_federal_communications_com_8.html?hpid=topnews