Big news recently has been the announcement of the potential purchase of Time Warner Cable, the United States’ second-biggest cable company, by Comcast Company, the biggest cable company in the U.S. Since this news came out last week, many Americans have been speculating on what changes may occur to their cable services if this deal goes through.
Comcast announced that it had agreed to buy Time Warner Cable this past Thursday for $45 billion, according to CNN. If the federal government approves this deal, the acquisition would create a cable giant that would immediately serve one out of every three homes in the U.S.
If the merger is approved by federal regulators, the companies would become one by the end of this year, according to Comcast. Some analysts familiar with the matter say the enlarged Comcast might drive up cable prices to compensate for increased costs of its rival and business partners. However, the two entities are in different U.S. markets, and the merger wouldn’t necessarily mean a loss of competition. Cable bills have been going up anyways, doubling roughly every 10 years.
Following the price question comes questions regarding service quality changes. The history of mergers between customer service providers of such magnitude has shown that both entities could be in for some troubles along the way as the companies work to make their processes more familiar and efficient.
Lastly, cable offering may change in terms of services offered, adding a potential bonus for current Time Warner Cable customers. Comcast will be able to offer its current 50,000 video on-demand choices on television, and 300,000 plus streaming choices on XfinityTV.com to a new customer base, among other services. If the two companies combine, it may become the new most inclusive option for mass media.
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