Monday, June 2, 2014

The Next Media Merger

From the cable operator side, the road to savings and distribution lies with mergers.  The Comcast - Time Warner Cable and AT&T - DirecTv announcements may only be the tip of the iceberg.  Does Cablevision finally see the writing on the wall and decides to finally sell its Long Island franchise?  And what about Cox Communication and their cable future?

The same thoughts on media mergers should also look to the other side of the table and the cable networks and all their programming.  Yes, NBC and all its cable networks are a powerhouse as is ABC and its handful of mainly sports networks.  But what about the other networks?  Does consolidation and merger help them when dealing with these new operator behemoths?  Is it time for Discovery Networks to look around and what about Scripps, AMC Networks, Time Warner, Inc, and Viacom.  Are they buyers or sellers?  Sure the Fuse sale to NuvoTV was minor, but it did help them to grow their subscriber reach.  It seems the pressure to gain distribution and retain license fees is growing and smaller networks could use the power of larger multichannel networks to promote and pursue full basic distribution.

The FCC may have their hands full with the two recent merger plans, but that may make the timing of a network merger that much more necessary.  So don't be surprised to hear of more media changes.  The pressure to compete is mounting.

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