Comcast-NBC merger sheds light on future of online video

Comcast says it has no incentive to withhold NBC shows and channels from Internet distributors such as YouTube and Vuze because the company want as many eyeballs as possible.

Comcast says that market is too young to regulate and that the Federal Communications Commission shouldn't impose conditions on the merged company that would force it to share NBC and Comcast channels with online video distributors. Even if it did keep competitors from getting their shows, "there is no basis for expecting withholding current NBCU networks from online providers could significantly harm the ability of an online provider to attract or retain subscribers," according to a Comcast online video report written by Mark Israel and Michael Katz. Indeed, the market for online video is dynamic. The number of videos online is booming. YouTube is still the top distributor of content, and in May it achieved a record level of viewing with 14.6 billion videos watched, according to Comscore. Eight out of 10 Internet users watched video online in May, and the average Hulu viewer watched 27 videos in May.

But regulators and critics of the merger say that market is precisely where the FCC and Justice Department should place much of its attention.