The Proposed Combination of Comcast and NBC Universal
Congresswoman Maxine Waters (CA-35) delivered the following opening remarks at today's House Judiciary Committee field hearing on the Comcast-NBC Merger. Members participating included Chairman John Conyers (D-MI), Congresswoman Waters, Rep. Steve Cohen (D-TN), Rep. Judy Chu (D-CA) and Rep. Louie Gohmert (R-TX). Witnesses testifying before the committee included Will Griffin, Hip Hop on Demand; Alex Nogales, National Hispanic Media Coalition; Samuel Kang, Greenlining Institute; Allen Hammond, Santa Clara Univ. School of Law; Alfred Liggins, Radio One; Stanley Washington, National Coalition of African American Owned Media; Paula Madison, NBC Universal; Jim Weitkamp, Communications Workers of America; Suzanne de Passe, de Passe Jones Entertainment; Darnell Hunt, UCLA; Kathryn Galan, National Association of Latino Independent Producers; and Frank Washington, Tower of Babel LLC.
Thank you, Mr. Chairman, for agreeing to organize this field hearing on the Comcast-NBC Merger. I am very pleased to welcome you and my colleagues to Los Angeles as we do our due diligence to further investigate and understand the implications this massive merger could have on our already heavily-consolidated media market.
Over the past couple of months, I have been active in advocating for transparency and an open process in the Federal Communications Commission's review of this merger. I have been very pleased with the FCC's leadership and response to our calls for an extension of the initial comment period and public hearings. Similarly, I hope the Department of Justice (DOJ) is conducting a labor-intensive review, considering the impact this merger stands to have on competition and consumers. While I am not opposed to this merger, I have long maintained that the Comcast-NBC merger raises serious questions and should not be rushed through an expedited review process.
I also want to thank our witnesses for agreeing to testify today. As some will note, there are a few people who are missing from the panel who were previously scheduled to attend. It is very troublesome that many independent and minority programmers, producers, writers, and directors have been afraid to voice their concerns for fear of blacklisting, or other forms of retaliation within their industries.
Indeed, due to the deregulation and federal agencies' rubber-stamped approval of media mergers, today, only five companies own the major broadcast networks; 90 percent of the top 50 cable networks produce three-quarters of all prime time programming, and control 70 percent of the prime time television market share. In 2007, minorities owned just 3.2 percent of the U.S. television stations and 7 percent of the nation's full power radio stations, despite comprising more than 34 percent of the population.
Today, Comcast Corporation has acquired massive reach and influence on its path to becoming the nation's largest cable company, whose first quarter profits this year reached $9.2 billion (In 2008, the company collected over $34.3 billion in revenue). Comcast owns cable franchises in 39 states; it has 23.9 million customers; 15.3 million high-speed Internet customers, and 7 million voice customers.
Under the merger agreement, Comcast Corporation stands to gain majority ownership and control of NBC Universal's two broadcast television networks (NBC and Telemundo), its 26 local owned-and-operated broadcast television stations, several national cable programming networks, a motion picture studio, an international theme park business, and NBC's online content business
While both the FCC and DOJ have the statutory authority to review media mergers under our federal antitrust laws, the FCC's process allows for a more comprehensive public interest analysis. Factors considered to be in the public interest may include, "a deeply rooted preference for preserving and enhancing competition, accelerating private deployment of advanced services, promoting diversity of license holdings, and generally managing the spectrum in the public trust."
The FCC's process incorporates the antitrust concerns that the DOJ must follow. Under the Clayton Act, the DOJ will evaluate whether the merger will substantially lessen competition or create a monopoly.
Accordingly, Comcast has advanced various public interest commitments pledging its dedication to preserve competition and involve minorities and underserved populations in all aspects of media programming, production, and distribution. As I understand, today, both Comcast and NBC have released a joint statement outlining their plans for corporate diversity and inclusion. While this is a positive first step, I am anxious to learn more about the proposed plan and how it proposes to meaningfully involve and create opportunities for women and minorities in executive leadership, management, advertising, and programming.
Therefore, Mr. Chairman, I look forward to hearing from our panel of witnesses so that they can help this Committee understand the scope of this merger. Their diverse views and perspectives will shed light on the type of considerations the DOJ must take into account while reviewing this merger. It is my hope that the parties to this merger can find ways to mitigate the potential harm this deal could have on consumers, competition, and minority communities' access to quality and affordable broadband service.
Thank you, and I yield back the balance of my time.
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