Roberts, Zucker Testify Before House Committee

WASHINGTON, D.C.: Brian Roberts, the chairman and CEO of Comcast Corporation, and Jeff Zucker, the president and CEO of NBC Universal, testified in front of the U.S. House Subcommittee on Communications, Technology and the Internet yesterday, making the case for the Comcast/GE joint venture for control of NBCU.

Roberts maintained that the Comcast/GE partnership "puts two great American communications companies under one roof. It will help to preserve traditional broadcast television—a business that faces serious challenges. And it will also help to accelerate a truly amazing digital future for consumers." He continued: "This joint venture should be good for consumers, innovation and competition."

The Comcast chief pointed to the company’s previously announced public-interest commitments to "bring viewers more local programming, more children’s programming, and more diverse programming, on more platforms. We have also made commitments to reassure our competitors that we will compete fairly in the marketplace."

Roberts went on to note that the Comcast and NBCU combination "is primarily vertical, which generally poses fewer antitrust concerns." As such, there will be "no massive layoffs—no closures of facilities—nothing to produce hundreds of millions of dollars of “synergies.” That is why some on Wall Street may not love this deal, but this same lack of overlap is why Washington can—because we will grow these great American businesses over the long term and make them more successful, not cut them."

In making his case, Roberts noted that Comcast has twice before sought merger approvals—for the acquisitions of AT&T and Adelphia. "We spent billions of dollars upgrading cable systems to make them state-of-the-art. We created Video On Demand, which our customers have used 14 billion times. And from a standing start four years ago, we now give millions of Americans their first real phone choice. Once again, we have described how consumers will benefit—and I want to assure you that we will deliver."

In conclusion, Roberts said, "We are asking for the opportunity to make one of the great icons of American broadcasting and communications part of the Comcast family. We promise to be reliable stewards for the national treasures of NBC and NBC News. It is a breathtaking, and humbling, moment in our history, and we hope to have your support."

As he opened his statement, Zucker stated that the merger "will help NBC Universal thrive and also benefit our local communities, our employees and the American consumers who enjoy our content. In today’s intensely competitive, unpredictable, and dynamic media markets, this deal is critical to realizing these benefits."

Zucker continued: "This deal will not change the fundamental competitive dynamic, or the extraordinary rate of technological change. But it will help NBC Universal compete in the new-media world."

The deal is good for NBCU, the U.S. economy and consumers, Zucker went on to say, because it will result in "investment and innovation— both of which, I believe, are essential if we are to remain a vigorous competitor in the 21st century media market and a growing source of high-wage jobs in an economy starved for employment."

Zucker stressed Comcast’s willingness to invest in NBCU’s network and cable programming, as well as its plan "to play a constructive role in the business negotiations between broadcast stations and MVPDs [multichannel video programming distributor]. Those two positions could play a pivotal role in finding a sustainable new business model for the struggling broadcast business."

He also cited Comcast’s history of innovation and "technological vision," to better serve consumers. "We must find a sustainable business model to meet consumer demands for access to programming any time anywhere. We need to be more nimble in taking advantage of new digital distribution capabilities—on-demand, online, mobile and beyond. This venture with Comcast positions NBCU to be a leading innovator in delivering content to consumers where they want it, when they want it and how they want it."

Zucker then discussed the competitive nature of today’s media market: "Each of the five largest media companies in America now only account for between 5 and 10 percent of all viewing, and a multitude of smaller competitors actually account for half of all television viewing. The new NBCU’s cable channel business, where we will add Comcast’s networks, will account for just 7 percent of total viewing and be fourth by revenue among owners of national cable networks."

He continued: "Very simply, this transaction will not change the tidal wave of competition inundating today’s media market. The big winner here is the consumer: more investment leads to more and better content; more innovation leads to more access…anytime, anywhere."

In conclusion, Zucker said: "I could not be more excited about the future of this company. This deal will give us the resources and the tools to innovate and adapt in an unpredictable media world, and meet the needs of 21st century consumers."