Vertically challenged?

The CRTC is holding a hearing this week to examine the increased level of vertical integration in Canada’s communications industry.

In my interview with CRTC Chair Konrad von Finckenstein at this year’s Canadian Telecom Summit, I asked about whether Canada is really so much more integrated than the US. The chairman observed that the US carriers, such as Comcast, don’t have mobile networks integrated with their broadcast companies.

However, it is worth a re-examination of Comcast as a comparable of what is happening in other markets.

I first wrote about NBC Universal nearly 5 years ago, in the context of 30 Rock’s series opener – long before Comcast purchased a majority interest in the broadcast and production company from General Electric. Comcast is a $50B cable powerhouse, with more than 22M subscribing to their video distribution (nearly double Canada’s total households), 16M high-speed internet customers and 8M voice customers. With NBC Universal, the company is a major broadcaster (including Telemundo), a major producer of content and it has theme parks. Comcast also owns the Philadelphia professional basketball and hockey franchises.

The world of entertainment is changing, not just in Canada. Follow the hearings. What level of flexibility with Canada’s broadcasters and carriers have to respond to their vision of the evolving marketplace?

2 thoughts on “Vertically challenged?”

  1. So does it mean if the U.S. of A makes a dumb regulatory decision about allowing more vertical integration, Canada must follow in its footsteps and allow it as well?

  2. Can you clarify what you mean by a “dumb regulatory decision” for the US? Has consumer choice been restricted? Does the US have a less competitive broadband marketplace? Content choices? Entertainment options?

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