A merged AT&T-Time Warner may not do consumers much good

AT&T and Time Warner are playing up how their $85.4 billion merger will lead to innovative new experiences for customers. But analysts, public-interest groups and some politicians are far from convinced. Republican presidential candidate Donald Trump said it should be killed. Sen Tim Kaine (D-VA), the Democratic vice presidential nominee, said less concentration in media "is generally helpful." And the Republican chairman and Democratic ranking member of the Senate's antitrust subcommittee said that the deal would "potentially raise significant antitrust issues."

The potential harm to consumers from this deal could be subtle — far more so than if AT&T were simply acquiring a direct competitor like a big wireless or home broadband company. Time Warner makes TV shows and movies; AT&T gets that video to customers' computers, phones and TVs. But the concern is that anything AT&T might do to make its broadband service stand out by tying it to Time Warner's programs and films could hurt consumers overall. The company certainly wants to do that. "With great content we believe you can build a truly differentiated service," said AT&T CEO Randall Stephenson. "In particular, mobile." There's another way AT&T could favor its own media offerings. The company currently lets many of its wireless customers stream from the DirecTV app on their phones without counting it against their data caps, a practice known as "zero rating." AT&T has suggested it may also zero-rate its upcoming live-streaming DirecTV Now service, which doesn't require customers to install a dish on their homes.