Originally published: June 28, 2012
Last updated: June 28, 2012 - 6:15pm
[Commentary] Various cable companies and Verizon Wireless have begun marketing some of each other's products in certain geographic markets. Antitrust authorities are still reviewing the cross-marketing arrangements, and only time will tell whether the deal passes government muster. Economic muster may be even harder for the cross-marketing arrangement to pass. Consider that few national firms consistently engage in cross-marketing. Toyota does not market Bridgestone tires or vice versa. Safeway does not direct customers to buy just Pepsi products, and Pepsi trucks do not steer people to Safeway stores. Perhaps these and just about every other major company are missing out on an opportunity to make money. Or perhaps these companies are concerned about antitrust review. Or, more likely, these companies have concluded that cross-marketing is difficult to conduct effectively.
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