Tonight on TV

Cable networks were created to bring niche interests to the masses and compete with the general programming of broadcasters. But the cable landscape has changed and cable networks are no longer acting like niches but behaving like broadcast networks. Case in point, tonight's line-up:

A&E - should be called CBS 2 with reruns of Criminal Mind and CSI: Miami
TV Land - once the home of classic TV shows is featuring a movie, "Private Benjamin"
Bravo - once culture TV presents Americas Next Top Model and a movie "Sleepless in Seattle" - that's culture?!
MTV - so long music videos, we get "Scream 3"
Travel - ahhh travel. So where to tonight - "Ghost Adventures Live!" Ticket for one, please.

And so it goes. Cable networks continue to broaden their programming so that they begin to lose their individual identity. Was that show on Food Network or TLC, AMC or TNT? So hard to say, they all start looking alike. So goodbye to networks, with VOD, simply watch the show you enjoy, regardless of where it may have first appeared.

Cablevision To Raise 2010 Video Rates 3.7%

How do you protect yourself from competition, sometimes its by keeping prices steady, perhaps even lowering them. That is somewhat the case for Cablevision. While voice and data rates remain steady, cable subscription is rising. Initially, I would have thought that this move was wrong, especially when cable basic subscription falls. But when your competition also raises rates then the one who raises it the least may be the winner. "The increase is slightly higher than 2009, when video rates rose an average of 3.5%. But it is substantially below the 21% increase Cablevision rival Verizon Communications implemented for its legacy FiOS TV Premier Package earlier this month."

Ultimately, the consumer, faced with either price increase will look at the other choices and ask, which is cheaper. To them, cable, voice, and data has begun to look more like a commodity than a differentiated product. What differentiates one from the other on the cable side is minimal, one has HD channels of local sports (obviously because Cablevision owns those channels and has not agreed to license them to Verizon). The other just picked up Epix. For the most part, for the majority of consumers, each has enough networks to satisfy. Each delivers data at broadband speed. Each offers wireline telephone service. How they service their current customer and how they woo their competitors customers may make the difference. In the meantime, price will continue to be the motivating factor. Regardless of how much they increase their price, it is the one that offers the lowest total cost for the package that will see the bigger rise of subscribers. In essence, cable TV has become a commodity product and the companies have done little to nothing to change that impression.

Quincy Smith Leaving CBS Interactive - What Does It Really Mean

Quincy Smith, CBS Interactive CEO, is leaving after 3 years at the helm to head back to Silicon Valley and his own startup. And while the claim is that he will continue to consult for CBS, the question is why now when the job he started has not been completed. TV.com, his alternative to Hulu, seems to be a non-product to its competitor and has little if any consumer awareness. The CNET acquisition has yet to thrive and their acquisition of a little website called Wallstrip merely resulted in its being shut down. So what grade does Quincy Smith get for his leadership? And why will he still be on retainer?

As Comcast and others discuss TV Everywhere, where does CBS stand. CBS seems to have created product and tactics without strategy and don't seem to know the direction they are headed. When asked in a recent interview, Smith replied, "Yeah, and I think there is a lot more I can do outside of CBS on that particular issue than inside. CBS has clearly got the Kool-aid of it inside. We have always been adamant about saying yes. Streaming stuff for fans online is the right thing to do, but the question is, What is the business model to make it work?" Ahhh, more questions than answers. Really, being outside CBS will help him focus on CBS. Got it. Right.

Is CBS also dissatisfied with Quincy Smith's performance and is this a nice way to get him out of the way. We will know when we see what kind of interaction this new company will have with CBS and how long it lasts. My vote, 3 to 6 months. It is a nice way to say goodbye.

Will Consumers Pay for Online Content

Hulu wants to charge for online content. Will consumers pay? They pay for Netflix, they pay for Blockbuster, but will they pay a site that has been previously offering its content for free? I expect that consumers will simply get more annoyed at thesecompanies and will utlimately find a way around them. The challenge for Hulu is not how to build a subscription model, but how to build an authentication model that feeds off of its cable license fees. Authentication is really all about convergence for the consumer, "what you want, where you want, when you want, how you want" - one price for access across all devices.

The added wrinkle is that the relationship between the cable company and its customer base is a poor one - built on poor service, bad communication, mistrust, and bad feelings. As technological advances hit the masses, from Apple to X Box, cable technology, and the box that enables TVs to function, look and act like old fashion, rotary dial, phones. There is nothing 21st century, with cool looks and interfaces, and ergonomic design to make the consumer feel that they are getting the best product from cable. Rather, they feel overcharged, and under appreciated. Hence as competition enters the fray, the customer makes a quick exit to the door.

So online content may try to find a subscription model. Just don't expect the consumer to roll over and take it. We have been mistreated for too long and will find other alternatives to satisfy our video cravings.

Fios To Exceed Cablevision Subscribers by 2010

In just a few short years, Verizon's rise in cable subscription has been fast and furious. While growth has slowed in the last quarter, Fios is the 6th largest cable operator, set to overtake Cablevision and the number 5 spot in 2010. And with partnerships with Direct TV in markets that don't have Fios, Verizon is still able to offer a triple play option to compete with cable. What makes Verizon most dangerous to cable in this competitive environment is that they can offer a fourth play, wireless communication, and build a compelling, competitive offer.

Sure Verizon has had to deal with the loss of customers from wireline, but that is mainly due to technological changes; consumers are switching off wires for cellular. To me that means that this third leg for cable is not the real hook that consumers need. Rather, cable must find a wireless product and build out a wireless broadband model. Consumers no longer want to be tethered to their home or to their devices. Devices must follow them.

As Fios' growth exceeds Cablevision, what does that mean for them? Does it push Cablevision to finally sell itself to Time Warner in order for it to better compete in the region? Verizon is reaching scale and no longer needs to sit at the kid's table; they are a major player in the cable distribution industry and will continue to demonstrate a strong voice in the months to come.

My hint to Fios. Buy some independent cable networks and create a stronger programming arm.

Hulu Needs To Grow Revenue

The idea of Hulu sounds impressive; bring TV content to the computer, build an advertising stream, gain new viewers by providing another avenue to watch shows, and hopefully move those viewers back to TV to strengthen the primary business. Why not. Most viewers would prefer the TV experience to computer and would rather watch long form in a sit back living room type experience.

Except Hulu seems to have some unintended consequences. Younger viewers see the computer as an alternative to TV, are getting content through the web, and eliminating their cable bill. Others are more technophiles and can connect the PC to their big screen and still enjoy long form content in a sit-back environment. In fact, TV makers are adding USB ports to support that connection. And advertisers aren't flocking to web video so that the CPM on the web is much less than the TV; hence, the owners of Hulu, NBC and Fox, are seeing "analog dollars being exchanged for digital pennies". It is not a fair trade. Some may contend that Hulu is additive to the TV experience, but my informal research tells me that it is talk without proof. The web is another distribution path for content and consumers are choosing the web to fill more and more of their entertainment interests.

So what is the next step for Hulu. Well according to the NY Post's article, Adieu free Hulu, it's time for Hulu to find incremental revenue models like subscription. "The online video site that offers full-length versions of current TV shows -- one of the fastest growing sites on the Web -- could start charging users as soon as next year, according to reports." Perhaps Hulu should tie itself back to cable and get a license fee in exchange for enabling authentication so that only cable customers can access cable content.

Will cable pay? Comcast is already building out its ondemand online model to compete with the Hulu model. Others may follow Comcast or embrace Hulu. Either way, it would have been naive to think that the free model from Hulu would last forever. The almighty dollar is far too powerful a force to keep it free forever. Will consumers adapt to this change to paid content? Not if it is accessible in other ways for free. The rise of free on demand viewing of these same programs, network websites, and even Apple's iTune store may become the more preferred means to access content. As Hulu becomes a pay model, it may simply become the first step to its destruction.

Can Twitter Generate Revenue?

If Twitter can find a business model, it may be due to the good fortunes and marketing savvy of Microsoft and Google. Both may be willing to pay Twitter to organize a search engine around its tweets. "The deals represent the latest evidence of the intense interest in what is known as the real-time Web — the constant stream of posts and updates on Twitter, Facebook and similar services. Unlike traditional Web pages and blogs, that real-time information has not been easily integrated by search engines."

As 99% of posts seem inane to me, what is there really to search for. Isn't the real news, already searched on web sites, simply linked to Twitter to spread the news. Is there anything fresh and unique only on Twitter that needs to be searched. I doubt it. It seems to me to be at first glance to be deals only in the best interest of Twitter and not of real long term value. We will have to wait and see to prove out my prediction.

TV Everywhere; Not Quite Yet

Comcast's alternative to Hulu is Fancast and with it, the chance to marry online content with cable subscription. I mean why buy the cow if the milk is free. Ideally, that subscription would lead to viewing outside the TV screen, on any other device authorized by your cable provider. Unfortunately, as long as Hulu is around, that authentication doesn't matter. Perhaps that is ultimately why Comcast will buy NBCU ( a founding partner of Hulu), to kill Hulu off. But back to Fancast, its authentication process today is limited to the wired home.

"On Demand Online will move from trial to reality later this year but not as the TV Everywhere wonderland all the hype might lead subscribers to expect: the streaming on demand will be limited to some cable shows and movies, access will be limited to in-home computers—and, at first, access will be possible only through Comcast’s own ISP, barring anyone who does not pay Comcast for video and broadband. But, as promised, the actual service will be free to cable subscribers; access will be through Comcast.net or the company’s video portal Fancast."

Ultimately, a deal will be needed with a wireless carrier to support the authentication process; with Verizon and AT&T doing their own thing, cable may have to do a deal with Sprint to add this piece to their puzzle. Will customers try Fancast or On Demand Online? It certainly depends on the content. If they offer full length shows not available on Hulu, TV.com, iTunes, or elsewhere, and can establish themselves as the only place for valuable online content then they may break through the current clutter.

Today though with so much video content available on these aggregators as well as other cable and broadcast websites, finding unique content to own may not be easy for Comcast and On Demand Online. They need to build their authentication process quick and demonstrate to content creators the importance of limiting their content sharing to authenticated sites in order to save the subscription revenue business.

To Survive, One Must Adapt

Barnes and Noble is acting like a survivor. Unlike the brick and mortar record stores, Virgin, Tower, etc, Barnes and Noble recognizes that in order o survive, one must change and adapt to the times. That is especially true with the rise of digital technology. Brick and mortar stores can survive even when the only thing being sold is data; hence the introduction of their E-book reader, the Nook. "The device features color touch-screen controls and a gray-and-white reading display. It will cost $259, matching Amazon.com’s most recent price cut for its latest edition of the Kindle."

The next step is to truly embrace it in the stores. With digital download stations, samples, and other means to keep customers coming into the store. make digital symbiotic with the store experience so both can survive, together and separately. It is how Barnes and Noble will ultimately differentiate itself from Amazon.

As usage will soar, Barnes & Noble can be positioned to adapt as digital takes hold and stores become less necessary. At the same time, consumers like getting out of the house to try new things, share and talk about content. That is Barnes and Noble's edge.

New Mobile DTV Standards

Here's an interesting tidbit in today's Cynopsis.com:

The Advanced Television Systems Committee (ATSC) approved a mobile DTV standard on Friday, clearing the way for broadcasters to transmit digital TV signals to a plethora of mobile devices. The formalization of the standard, in the works since May of 2007, gives chipmakers and gadget manufactures the template they need to develop handheld TVs, DTV-compatible netbooks and tuner-integrated mobile phones that can pick up ad-supported local news, weather and sports programming. In addition to live television, the new ATSC Mobile DTV standard also provides an application framework to enable receivers to bake in a number of interactive services. Look for iTV apps including live viewer voting, polling, advertising applications and audience measurement components to be built into the mobile DTV platform.


So a new DTV standard for mobile phones will enable more interactive applications. Why isn't it first happening in set top boxes? These bricks with wires can barely switch from one channel to another without a noticeable lag, freeze up when trick features are used, and cause more aggravation than enjoyment. And so as phones become more enabled, TVs become less so. It's time for some real convergence of technology. Put similar standards in the converter box and enable consumers to use the device that best appeals to them. For me, a Tivo without the need for a Cablecard or two, just a code that authorizes the cable company to talk to it. It's time to put some 21st thinking into the converter box ASAP.

Will Hulu Save Or Destroy Traditional TV

Hulu is a change agent. Full programs, not just clips, to the viewer provides an alternative to TV viewing. So is it complementary or a predator? The answer is that it depends. Will consumers stop purchasing cable TV subscription because their online subscription provides enough viewing or will consumers recognize that it is not an either or decision and will ultimately consume both.

TV Everywhere is a concept designed to take that choice out of the consumer's hands. It says that only cable subscribers get access to viewing content on other platforms; one must be authorized through cable to get access on the other devices. Hulu currently does not work under the TV Everywhere concept. It offers free viewing, most with less commercials than current cable inserts. So there is an added appeal to switch.

Will Hulu change to a subscription model? Will consumers buy one without the other? Or will Hulu adapt to a TV Everywhere mode and get authorized access via its cable partnerships. If Hulu can get an incremental fee from the MSOs, that seems like a likely route. At the same time, Comcast has created Fancast, a Hulu wannabee. Change is in the air.

Can Twitter Make Money For Itself

Many companies have figured out a way to use Twitter to augment their marketing tactics. It enables better communication to customers, reaches the brand fans, and enables quick feedback on how well the relationship between customer and company is doing. It is working for many companies save one, Twitter. Twitter cannot make money on itself.

I know of two ways to make money - subscription and advertising. As a free service, it would be very difficult for Twitter to start charging for subscription. And what else can they ad to try and build a premium level for a fee. And as for advertising, with only 140 characters and ideally suited for mobile devices, as well as the computer, there is not much room for an ad. Pop ups, no way; banners, how effective can they be. Twitter is an ideal mechanism to support marketing communications for others, but not itself.

There also seems to be two types of users: active twitterers and voyeurs. One constantly inputs info to the point of ad nauseum, the other likes to read what others are doing but has no interest in contributing to the banter. At some point, won't the first group get tired of writing tweets and move on to the next thing. Won't the latter group get bored of reading nothing more than nonsense and find something else to do.

At least for other social networking sites, like Facebook and My Space, there is more to do than post. And with more options come more potential opportunities to add advertising. Twitter seems so limited when compared to others.

Time Warner To Comcast: Some Mergers Don't Make Sense

Time Warner's CEO Jeffrey Bewkes doesn't think NBCU makes sense as an acquisition target for Comcast. Their experience with AOL is prime example that synergy is not easy to come by. And content and distribution together may be a deadly combination. They recently separated the two into different companies, Time Warnr Cable for distribution, Time Warner for content. "Mr. Bewkes pointed to Time Warner Cable's recent spin-off from its corporate parent as a sign of media disaggregation done well." The two didn't play well together in the same sandbox.

Should Comcast heed this advice. Does an NBCU-Comcast entity make sense? Can Comcast compete with ESPN in one area of its company and work closely with them in another. "Speaking at a keynote Q&A at TV Week's Innovation 360 conference in New York, Mr. Bewkes described NBCU as a "very complicated" business that might not make total sense for a cable company such as suitor Comcast with a portfolio that includes a broadcast network and a movie studio." Perhaps it is worth listening to this wisdom. Perhaps content and distribution work better separately, than together.

Bloomberg Wins Business Week

Mike Bloomberg has done extremely well in his career. Building a business, running a major metropolitan city, noticing opportunities and making a mark in the world. His latest, the purchase of Business Week Magazine. "With the move, Bloomberg takes on BusinessWeek’s faltering financial situation, plummeting ad sales and all—and gains its resources, products, standing and valuable brand. Bloomberg’s execs expect to strengthen Bloomberg Television, using that brand and the magazine’s “world-class” journalists, and the company’s web presence." It is a shot in the arm for magazine publishing.

What it says to me is that there is a profitable business opportunity to be exploited. Bloomberg's multimedia approach recognizes that content can live and breathe in multiple forms. His financial backing demonstrates that with better management, a keener approach to using its content and credibility across platforms, and vision of what may be possible with the web and e-books, Business Week can live on quite well. I'm excited for what Bloomberg can accomplish with this well regarded magazine.

Lather, Rinse, Repeat as Needed (Same With Your Cable Box)

Now that the digital conversion has taken affect, every TV requires a cable box to receive channels once accessible directly to the TV set through the cable wire. And now with more boxes, more problems. So why call the cable company for assistance when the answer is always the same: unplug the box, wait 30 seconds, plug back in. What it didn't work; repeat, try again. That is the number one solution for every cable problem! Is it that the cable box is overworked or just a brick in sheep's clothing. These problems don't occur nearly as often with computers, Tivos, Playstations, Wiis, or other devices; the cable box needs continual rebooting. Stuck channel - reboot; no cable guide - reboot; no service - reboot.

Frustrating to say the least. And does it seem that every cable box that gets put in the field has been refurbished. Who is getting the new boxes? And when will Comcast finally get me a Tivo guide in their cable box at my home? I remain frustrated, ready to switch providers and missing the days when I had a Tivo directly connected to the TV WITHOUT a cable box to slow me down. Why do customers switch providers; cost may be one reason, but service and connectivity is definitely another.

Is Leno at 10pm Working?

It is still too early to judge whether the NBC experiment, replacing 5 hours of scripted series with a talk show, is genius or stupidity. But rumblings and aftereffects are being felt. One is a scripted series, Southland, that was meant for 10pm but forced to fill a 9 pm slot. It has been quickly cancelled. Another is the ratings at 11pm of the local newscast that follows Jay. "Late newscasts on local stations affiliated with NBC are reporting significant ratings declines, at least partly because of a ratings drop-off in the 10:30 half-hour that precedes them." And third is a drop in ratings of its perennial late-night staple, The Tonight Show. NBC still says it is bullish on The Jay Leno Show and says it needs to be judged over a year in order to measure its success. For NBC, the bottom line measure is the net profit it delivers; despite lower revenues, Jay' much lower costs will give it greater value to NBC. In isolation, that may be true; but, if other shows are also affected and the TOTAL bottom line of NBC is lower because of Jay's ancillary effect on newscasts, syndication, and late night revenue, then it may not be as successful as first thought. Yes NBC, time will tell.

Is NBCU The Best Fit For Comcast?

Comcast wants content and NBC Universal is for sale, but does that make it the best strategic fit? As the article suggests, Comcast seeks to expand its cable networks, but NBCU is more than just that; it includes broadcast and affiliates, a movie studio, theme park, and more. Would Comcast then have to spin off these non core assets to pare down to what they want. Sure NBCU may be motivated to sell cheap, but cheap doesn't necessarily get you a great deal.

Comcast needs to really determine what business they want to be in and whether this deal strategically, and not just financially, makes sense. And do they really want to own a broadcast channel with local affiliates. Could that add a whole new wrinkle to their distribution business? I'm sure it will raise an eyebrow or two with the FCC. There are plenty of other cable networks that could be ripe for acquisition. The article mentions some, including Discovery and Scripps, but others exist. Those acquisitions come with far less headaches and far more synergy.

"Still, Roberts is an opportunistic dealmaker, and sources said he thinks he can steal NBCU because parent company General Electric is essentially a distressed seller." Sometimes if a deal is too good to be true, it is too good to be true. Comcast must concern itself with its core business, cable distribution, and there they have much bigger issues. If this is a fundamental switch toward content AND away from distribution, that is one thing; but, if it is about both, and NBCU acquisition will cause many more problems and thin out resources, just as Comcast faces growing competitive problems from Verizon and AT&T. Strategically speaking, Comcast needs to decide which battle they want to fight, telco or FCC!

Cable's Loss Is Telco's Gain

I came across this website through an associate and when I scrolled down saw this chart of basic sub growth from Q3 2008 through Q2 2009. It indicates a serious problem for the cable operator:



Over the four quarters cable basic subscription has dropped, while the telcos, AT&T and Verizon, and Direct TV has shown growth. In fact, telco and dish basic growth is greater than cable's loss, indicating that there are still homes that are new to cable television.

Of the cable operators, only Insight has for the most part gained subscribers for three of the four quarters. Comcast has consistently had the most loss for the same period. While cable may be selling more services to their current customers, data and telephone - the triple play, it is finding itself selling to a smaller and smaller universe.

In summary, the incumbent has a serious challenger in the telcos and better do more to reverse this trend or will find itself selling less of its other products and losing serious revenue. Today, AT&T and Verizon's share of the cable universe remains small, but the indication is that they are growing fast. Per the JD Power report, telcos and satellite are beating cable for customer satisfaction. The trend should be disturbing to cable and they need to act FAST or risk losing their lead in the next few years. Customers are dissatisfied with the service, choice, quality, and price. Cable is zero for four and has built for itself a bad reputation in the marketplace. It is time to re-evaluate and change internally, then market that new approach to win back customers. Otherwise, the leak in the dam will only continue to grow!

Google Android Versus Apple iPhone

Will the iPhone ever be offered on the Verizon Wireless network? Certainly a partnership with Google seems to indicate that Apple won't join Verizon any time soon. "Verizon Wireless and Google said Tuesday that they will partner to co-develop a bevy of Android-based devices. Verizon Wireless also said that it will tightly integrate its network with Google apps—including Google Voice." Sounds like a direct frontal assault to the Apple App store to me. It certainly is directly aimed at Apple and iPhone. Given the headstart that Apple has, it may not be such a fair fight. It may depend on how open the device is and how many third party developers come on board to help load it with interesting and useful application.

Will it preclude a future deal with Apple for Verizon. Let's just say, I believe a Line has been drawn in the sand. It may depend who blinks first. And this staring contest could go on for a while.

Condé Nast Doesn't See A Future With Magazines

In a true blow to the magazine industry, Condé Nast threw up their hands and says "No Mas" to a number of long time, popular magazines. The axe hit some notable titles including Gourmet, Modern Bride, Elegant Bride and parenting magazine Cookie. Rather than sell these title to another entity, Condé Nast will just shut them down and lay off its employees. This move isn't new to them. "Condé Nast in the past year closed its Portfolio, Domino and Golf for Women magazines. It folded Men’s Vogue into Vogue magazine."

Certainly the ad market for magazine has slowed although some are seeing it turn the corner. And subscription has taken a toll as well, especially when it competes against free content on the web. Still, Kindle and other portable devices are growing rapidly and need content to grow more. A subscription service does make sense on these devices and could work well.

Condé Nast may have suffered as none of their magazine brands have broadened outside their media. Scripps seems to have done a better job tying in their cable network brands with magazines including cooking, home repair, etc. Could Condé Nast have done more to be part of the trend and not left behind it. It seems more could have been done.

It seems too that this business decision was made because of a consultant's recommendation. "Condé Nast hired consulting firm McKinsey & Co. in July to evaluate its magazine properties and other aspects of its business, said Maurie Perl, a spokeswoman for the publisher." Was this the best decision they could come up with. I sometimes wonder if all consultants do is create change to justify their fee; did they ever evaluate the choice of status quo. And was a sale of the brands even a possibility. Was the ending of Gourmet, Modern Bride, and others truly the best course of action.

Should Magazines Follow The Hulu Model?

It seems print media wants a recharge and they think aggregating their digital content onto one site, a la Hulu, is the solution. "The new service, as yet unnamed, would serve as a digital storefront for magazines, possibly newspapers and other publications and is expected to be announced in about a month. The launch is planned for 2010, people familiar with the plan said." And I ask why.

Hulu is fraught with problems for the video industry. it offers free content, and enables consumers to drop their cable subscription for free programming. Hulu takes viewers away from the networks own brand into a new one. Thus you can watch The Office without caring whether it came from NBC or Fox or somewhere else. It disrupts the current subscription model, not extends it. The TV everywhere concept at least attempts to force consumers to first be subscribers before they get to view content.

So why buy the magazine if the content is free elsewhere? And how can individual print brands be maintained as this new entity develops an overlaying umbrella brand? And finally, why will the consumer subscribe, if the content is free? Rather, these same content creators should instead pursue a store approach that competes with Amazon and Apple and sells digital copies of their pages over different media devices. Support Kindle, E-reader, Iphone, and others with both a digital and print copy for one low price. Offer single copies and subscriptions at different price points and benefits. Use these readers to your advantage; they are the future for printed content. A Hulu-like web site is not the best solution.

Comcast, GE Said to Discuss NBC Universal Stake Sale

Don't let the facts get in the way of a good lie. Where once there was denial, quickly comes proof. It seems that Comcast is indeed looking to buy NBC and GE is willing to part with 51% as it would spin off NBC into a separate company where GE would see its ownership drop from 80% to 49%. Still it keeps GE in the entertainment game and allows them to reap some of the rewards, including trips to future Olympics.

"Negotiations for Comcast to buy about 50 percent of NBC Universal have been under way for at least two months and a deal would depend in part on Vivendi SA making a decision to sell its 20 percent holding, said one of the people, who declined to be identified because the talks are private." As Vivendi has been talking about selling, I doubt that they will be the problem; valuation of the NBC Universal asset will surely affect the negotiations as they move forward.

Andy while the negotiations are at a very early stage, speculation remains on how Comcast would run this kind of business. Would current senior management remain? Would the philosophy of cheaper entertainment, i.e. The Jay Leno Show, be applauded or switched off? And will it be run out of New York or would operations switch to Philadelphia? Maybe, GE will recognize the power of the NBCU business to its bottom line, offsetting the losses of its other operations. They could just as easily walk away from this deal. Too, too early, but always fun to ask the questions.

Rumor Alert - Comcast Buying NBC

Quickly denied, but certainly a possibility, Comcast may be bidding to take NBC away from General Electric. About five years ago, Comcast was unsuccessful in its bid for Disney/ABC, so a NBC acquisition is certainly not out of the question. Still, because it is still so early in the process, denials are aplenty. "'While we do not normally comment on M&A rumors, the report that Comcast has a deal to purchase NBC Universal is inaccurate,' the spokesman said." What else are they supposed to say.

The issue of NBC being sold is not going away because of Vivendi's plan to sell its 20% ownership of the company. If GE doesn't choose to buy out its partner or spin it off into a separate company, a sale remains a distinct possibility and Comcast looks like it could be a good buyer. With its distribution platform coupled with its ownership of other cable networks, NBC, its broadcast and cable operations, would fit nicely into the mix. Will it happen? Stay tuned...