• Higher Cable Rates — Philadelphia already suffers some of the highest cable rates in the nation. Analysts predict that Comcast will have to increase their offer to $68 billion and assume Walt Disney Co.'s $12 billion in debt in order to complete the merger. Much of this financial burden would be passed to customers, resulting in even higher cable bills. Comcast would also have the power to make their newly-acquired cable programming part of the "basic package," while charging "premium" fees for additional channels. Since customers generally have no choice in cable providers, they will either have to pay or have to do without.

• Controlling TV Programming — Comcast is already the world's largest cable provider, with 21.5 million subscribers across the country, including 70% of subscribers in the nationŐs top 20 markets. Disney is the current owner of the ABC television network and a number of television production studios. A merger of the two would create vertical integration needed to shutout competing producers. The combined companyŐs everyday business decisions would thus play an unprecedented, enormous role in shaping news, sports and entertainment programming for the entire nation.

• Ignoring Public Interest Mandates — Comcast has had a traditionally hostile attitude toward public access media requirements, obstructing or shutting down community access centers in Philadelphia and around the country. With the purchase of Disney's films and television programming, Comcast will own content it will want to sell through Video On Demand and Streaming Internet services. The merger would lead to an increased incentive for the cable giant to hoard cable bandwith for profitable, in-house projects at the expense of local community programming.

• Privatization of the Internet — With 5.3 million high-speed Internet customers, Comcast is the largest broadband Internet Service Provider in the world. The cable industry's business model for the Internet is antithetical to the "open access" principles that were instrumental to the InternetŐs creation and success. With the purchase of Disney, Comcast will control much of the content on the Internet, in addition to the technical network needed to pipe that content into people's homes. Since its purchase of AT&T Broadband, Comcast has worked to turn the information super-highway into a private toll road. They already have the technological ability to control the speed at which different websites appear when requested by users, and to charge different prices for access to different sites. The fact that Microsoft is the top shareholder in Comcast, and that Microsoft may help to back the Disney takeover, should be added cause for concern.

• More Employee Layoffs — Comcast cut thousands of jobs after its merger with AT&T Broadband. If the Disney takeover is approved, the combined company will again face staff "redundancies" and a huge amount of debt. A Communication Workers of America official has criticized Comcast as anti-union. It is likely that significant downsizing and/or pay cuts would follow the merger.

• Big Economic Risk — In the wake of devastating financial problems at Adelphia, Time Warner and WorldCom, many are wondering if the "bigger is better" model isn't deeply flawed. The price of Comcast's stock dropped noticeably after news of the Disney takeover bid. Comcast in particular is known for a lack of openness and shareholder control. President and CEO Brian Roberts holds approximately one-third of voting control in the company, despite owning less that 1% of the stock. He also has an unusually large amount of influence over who is able to join the board of directors. This has led to criticism by a large number of shareholders and analysts.

• Political Payoffs — Comcast's professional lobby team includes close friends and relatives of influential members of the Bush administration, the Rendell administration and Congress. According one Comcast lobbyist, the lobby team has "a lot of balance. Republican and Democrat, House and Senate, people who have relationships throughout Washington." Comcast's PAC also traditionally gives around half-a-million dollars to targeted political candidates each year, with hundreds of thousands of additional campaign contributions from individual Comcast executives.

• Compromising Democracy — How the nation's communications infrastructure is controlled and accessed should be determined through reasoned policy debates that include public participation, not by the pressures of one mega-corporation. The free flow of information is crucial for a democratic society. If the takeover of Disney is allowed, Comcast would simply have too much say over how information is transmitted in America. They would also have even greater political and legal leverage to shape policies that favors their interests. Especially in Philadelphia, the cradle of America's best traditions, we need act to protect our democracy.

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Articles & Media Coverage

Comcast/Disney Special Features

• Financial Times

• I Want Media

• New York Times