WWW- The $17.6 billion sale of Adelphia Communications Corp. to Comcast Corp. and Time Warner Inc. could have negative repercussions on programming rates and variety, say satellite- TV companies and public-interest groups.
Adelphia, based in Greenwood Village, has operated in Chapter 11 bankruptcy since 2002. The company’s 5.3 million subscribers will be carved up between Comcast and Time Warner, the nation’s two largest cable providers.
The deal will make them the “gatekeepers” of what Americans watch on television, said Jonathan Rintels, executive director for the Washington-based Center for Creative Voices in Media.
The center – which advocates for artists interested in more independent viewpoints on TV and the Internet – is asking officials in cities nationwide to oppose the deal, which was announced Thursday and requires regulatory approval. “Because of its size, Comcast can control the networks that get on the system,” Rintels said. “And if you don’t make a deal with Comcast, you don’t have a network.”
Comcast is the largest cable provider in the United States, reaching 21.5 million subscribers, including 680,000 in Colorado. After the deal – expected to close in nine to 12 months – the Philadelphia-based company will have 23.3 million subscribers and nearly 30 percent of the cable-TV market.
Adelphia officials said they don’t foresee problems clearing regulatory hurdles.
“We believe it’s a very attractive deal; our constituents are very supportive of it,” Adelphia spokeswoman Erica Stull said. “We know of no objections at this time.”
Star Communications said the sale raises concerns about higher programming fees.
The company opposes the purchase, as Comcast’s leverage with programmers already “reduces satellite’s ability to compete in the pay-TV industry,” EchoStar spokesman Steve Caulk said.
“Of particular concern is that both Time Warner and Comcast own programming that is not always made available to satellite companies at fair prices,” Caulk said. “The victims are the American consumers.”