Summary Of Comcast And Time Warner Cable

Summary Of Comcast And Time Warner Cable

In Derek Thompson's article "Prisoners of Cable" (Thompson, 2012), Thompson wrote why consumers in the US were the prisoners of the cable bundle. In this essay, I will provide a brief analysis of the article written by Derek Thomson and discuss about how the proposed merger of Comcast and Time Warner Cable and AT&T and Time Warner apply. Thompson argued that while consumers wishes to purchase the channel or even individual show sold as a la carte, it is not as simple as many think in music industry (Thompson, 2012, para.3). In supporting arguments, Thompson stated that TV subscribers, which accounts 83 percent of U.S. households, are paying for the TV service that three bundles nested inside each other. Thompson also mentioned "Media companies ... Show more content on Helpwriting.net ...Their statement to mitigate the concerns of market competitiveness is focused on Cable's subscribers (Comcast, 2014). 4–firm concentration rate for the cable industry in Table 5.1 in the textbook shows the competition level (Besanko et al., 2016, p.162). In the assessment to quantify the impact of Comcast and Time Warner Cable merger, we need to look at the impact of the telecom infrastructure landscape and not the cable subscribers impact because the media companies are expanding to "cord cutters" that streams the contents over the Internet (Thompson, 2012). According to a page that quantifies the impact of Comcast and Time Warner Cable merger, the subscribers of truly high speed internet by the merger are near 50% (Freepress, n.d.). Though the market share of the high speed internet is very high by the merger, this is a monopolistic competition as there are could be many sellers and those sellers can continue to differentiate. For example, high speed internet connection via the cable technology can be replaced by the aerial high speed internet connection provided by telecom companies like AT&T, Verizon, T–Mobile. The aerial cellular based technology like LTE or 5G network which can provide massive data rate and reduced network latency can be positioned

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