Making Money From the Internet

From the Media Decoder blog at the New York Times on Saturday:

On Thursday, NBC’s news division staged an elaborate presentation for advertisers, seeking to sell commercial time in NBC’s news programs over the next year. All the members of MSNBC’s prime-time lineup spoke at the lunch with one exception: Keith Olbermann, the network’s biggest star.

For the last several weeks, Mr. Olbermann and the network have been in negotiations to end his successful run on MSNBC, according to executives involved in the talks who requested anonymity because the talks were confidential. ... Friday’s separation agreement between MSNBC and Mr. Olbermann includes restrictions on when he can next lead a television show and when he can give interviews about the decision to end his association with the news channel.

The executives involved in the discussions confirmed that the deal carries limitations for Mr. Olbermann in terms of when he can next work on television, though he will be able to take a job in radio or on any forum on the Internet. The deal also prohibits the host from commenting publicly on the deal, the executives confirmed. ... None of the executives who discussed the deal would reveal the exact length of the restrictions.

The article quotes free-speech law professor Marvin Ammori as questioning the move and saying via email that "Comcast’s shakedown of NBC has just begun."

Comcast denies any involvement and says it has pledged "not interfere with NBC Universal’s news operations."

So, who you gonna believe — your lying eyes? Or that nice cable provider you send all that money to?

GP

NOTE FROM JOHN: Sure, the exit was planned weeks ago - that's why Keith said Friday night that he was told Friday would be his last show (and making it sound like he was JUST told), and that's why Keith didn't even tell anyone he was leaving until his last show was on the air. None of this sounds like a deal that was worked out weeks ago. Though, note the quote: weeks in the making. You could argue it was months or years in the making, if you want to talk about souring relationships.

And yes, the restrictions on when Olbermann can next go on the air are sickening. I suspect, and hope, NBC/Comcast paid Olbermann millions to keep him off the air. But as consumers, and politically aware Americans, it's disturbing as hell that NBC and Comcast just required one of the top voices of the left, if not its top voice on television, to STFU for the foreseeable future. It only makes the move by NBC and Comcast look all the more political, and worse, partisan.

Update: Correction: A reader emailed Midcontinent Communications about my statement below that Midco is owned by Comcast. Midcontinent responded saying, “While we do have an affiliation with Comcast, we are not owned by them. Any decisions like the FCC is trying to impose on them would not be passed down to us as we are a separate entity. If we do make any changes like this would be announced to the public long before it is imposed.”

The FCC giving its permission to Comcast to buy NBC has been making headlines of late, but there are some rather surprising requirements the FCC tied to the deal. Such as this:

“Comcast will make available to approximately 2.5 million low income households: (i) high-speed Internet access service for less than $10 per month; (ii) personal computers, netbooks, or other computer equipment at a purchase price below $150″ and “we require Comcast-NBCU to increase programming diversity by expanding its over the-air programming to the Spanish language-speaking community, and by making NBCU’s Spanish-language broadcast programming available via Comcast’s on demand and online platforms.”

There’s more, the FCC also requires Comcast to increase “diversity” in video content:

As part of the merger, Comcast-NBCU will be required to take affirmative steps to foster competition in the video marketplace. In addition, Comcast-NBCU will increase local news coverage to viewers; expand children’s programming; enhance the diversity of programming available to Spanish-speaking viewers; offer broadband services to low-income Americans at reduced monthly prices; and provide high-speed broadband to schools, libraries and underserved communities, among other public benefits

Content providers make money by supplying content, or access to content, that people actually want. If content providers aren’t providing certain types of content that’s probably because that content can’t be provided at a profit. So what the FCC is requiring is a lot of unprofitable content decisions from Comcast, not to mention subsidized internet access and computers.

And who is going to pay for it all? You and I, in the form of higher prices (North Dakota citizens should be aware that Midcontinent Communications is owned by Comcast).

A lot of these were goals in the FCC granting itself net neutrality powers, and it appears as though the FCC is going to implement them like a bunch of gangsters by withholding their blessing for a merger unless their wishes are obeyed.

Tags: comcast, fcc, nbc, net neutrality

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