The U.S. Justice Department has opened up an investigation to see if cable companies are acting inappropriately with efforts to smash their online video competition. The probing stemmed from the issue of cable companies allegedly violating antitrust laws.
According to Bloomberg, “The department is examining whether Comcast and Time Warner Cable Inc. (TWC) are using their status as providers of programming and high-speed Internet to put online video providers such as Netflix Inc. (NFLX) and Hulu LLC at a competitive disadvantage, said the people, who weren’t authorized to speak publicly.”
As of right now, representatives to each of the companies involved, as well as the Justice Department, have refused to comment publically on this investigation.
The undisclosed people have said, “Authorities are probing whether Philadelphia-based Comcast broke the law by creating incentives to consumers to watch programming through its cable services instead of through the online video providers.”
Comcast is playing with their data caps. They count videos streamed through Hulu or Netflix against your data limit, but provide unlimited streaming through Xfinity, which is their own application.
“The cap should be applied equally or not at all,” Netflix Chief Executive Officer Reed Hastings said on an April 23 earnings conference call.
Since then Comcast has played with their data policy.
Furthermore, authorities are making sure that cable companies have not signed deals to gain their television programming at lower prices than their competitors, the online providers, are charging.
What this means for you: Currently, you have choices. You can choose to turn on your television, put on whichever channel you’d like, and watch what you want when you want to. Or you can choose to stream a show or movie from your computer whenever it suits you. From live TV to endless reruns you can watch what you want.
In hope to aid the growth of online video networks, the government wants to help provide consumers with more viewing choices and not just one.
“The government wants to see that the consumer has more access for less money,” said Jeffrey Jacobovitz, an antitrust litigator with McCarthy, Sweeney & Harkaway PC in Washington.
Last year, Comcast bought NBC Universal, and in doing so the government imposed constraints making sure that Comcast knew they could not compete unruly against the growing online streaming companies.
What it boils down to: Comcast is doing what they can to ensure that they keep the viewers that they have. As online streaming grows they want to make sure they stay on top of their game. But in a world where things grow daily, why should one form of communication be able to out another?
As a collegiette, do you watch more television online or on a TV set? How does this impact you? Share your comments in the space below!