Merger plans for Comcast, NBC ignite battle over television access

The Comcast-NBC Universal deal would create a new kind of media colossus that would not only produce some of America's most popular entertainment but also control viewers' access to it. The roughly $30 billion deal set off immediate reaction from consumer groups and lawmakers in Washington, heralding an epic regulatory battle over concentrating so much power in one company. Almost one in four cable subscribers in the U.S. is a Comcast customer. Critics worry that the consolidation of the two big companies could drive up cable TV bills and make some content off limits to anyone who doesn't subscribe to Comcast's services. The Philadelphia company has said it wants to keep NBC and Universal entertainment available to the widest possible audience. It did not address the cost issue on Thursday. The deal also must overcome the poor track record of previous mergers between media giants, most notably the disastrous pairing of AOL and TimeWarner. Public interest groups are particularly concerned about the deal's impact on the nascent but growing market for online video, where new operators such as Hulu, YouTube and Netflix are changing the media landscape with free or low-priced products. Analysts say the merger will be a test for how regulators will deal with the Internet video market, which doesn't fall directly under the Federal Communications Commission's jurisdiction. But the agency is exploring competition in online video, and it could use the merger to implement conditions that would set guidelines for the burgeoning market.