Groups seek probe of internet cable programs
Consumer groups asked U.S. antitrust officials to investigate whether Comcast Corp. and other video providers illegally colluded to offer television programming on the Web exclusively to cable subscribers.
"The cartel of the old media market is using its power to replicate itself in the new media market," Yonkers, New York- based Consumers Union, Washington-based advocacy group Free Press and other groups said in a letter distributed by e-mail. Cable providers disputed the charge.
At issue are services that are available via the Internet only to cable subscribers, known as TV Everywhere, the groups said in their letter to Christine Varney, assistant attorney general for antitrust. The service "rests on an illegal agreement among competitors" designed to thwart emerging Web- based rivals, ensuring that consumers can't cancel subscriptions "and turn to competing TV services that use the Internet."
The groups said they also were contacting the Federal Trade Commission, the Federal Communications Commission and congressional committees.
The consumer organizations "get it exactly backwards," Kyle McSlarrow, president of the Washington-based National Cable & Telecommunications Association, a trade group, said in a blog posting. He said companies are trying "to ensure more content than ever is distributed over the Internet at no extra charge to consumers."
Comcast, the largest U.S. cable operator, on Dec. 15 announced an online service available to its digital video subscribers. The service features shows from 27 networks including Time Warner Inc.'s HBO and from CBS Corp., according to a blog posting by Philadelphia-based Comcast.
TV and Internet
Customers use a computer to sign in, and the online service makes available shows they're entitled to watch, depending on their subscription, the blog posting said.
Sena Fitzmaurice, a Washington-based Comcast spokeswoman, declined to comment.
Other subscription video providers have announced plans for TV Everywhere services, the consumer groups said.
Time Warner Inc. is "committed" to letting consumers "watch their favorite shows when they want to watch them on both their TVs and over the Internet at no additional charge," said Keith Cocozza, a spokesman for New York-based company. "That is what TV Everywhere is, and it is quite plainly beneficial for consumers."
Gina Talamona, a Justice Department spokeswoman, declined to comment.