Bloomberg Threatens to File Complaint with FCC Over Channel Placement

Strategic Insights -

Bloomberg L.P. has expressed concerns that Comcast Corp. is not following the terms of the Federal Communications Commission's (FCC) 280-page order regarding the acquisition of NBC Universal Inc. The order mandated that Comcast place like-minded channels together, but the company has allegedly ignored this provision, separating Bloomberg TV from other news channels. This, Bloomberg claims, puts its business channel at a competitive disadvantage to Comcast-controlled CNBC, leading the company to threaten a complaint with the FCC. Comcast disputes this, arguing that the requested change would lead to "massive channel realignments across the country."

Key Takeaways:

  • Bloomberg L.P. is seeking to enforce a provision in the FCC's 280-page order, which requires that Comcast place like-minded channels together.
  • The order was issued in January, following Comcast's acquisition of NBC Universal Inc.
  • Bloomberg claims that separating its TV channel from other news channels puts it at a competitive disadvantage to Comcast-controlled CNBC.
  • Comcast disputes this, arguing that grouping Bloomberg TV with other news channels would be "anticonsumer" and require "massive channel realignments" across the country.
  • Comcast maintains that it does not believe it is required to "neighborhood" channels, as Bloomberg asserts.
  • Peter T. Grauer, chairman of Bloomberg, has stated that the company will take its case to the FCC if Comcast continues to ignore the provision.

Statistics:

  • The FCC order was 280 pages in length.
  • Comcast acquired NBC Universal Inc. in January.
  • Bloomberg TV is currently separated from other news channels on Comcast's cable lineup.
  • Comcast-controlled CNBC is ranked as the dominant business news channel.
  • 45% of Comcast viewers in Center City have CNBC as Channel 47.

Sources:

  • Bob Fernandez, "Bloomberg Threatens to File Complaint with FCC Over Channel Placement", The Philadelphia Inquirer, May 28
  • Bloomberg, "Comcast & Bloomberg TV: A Channel Conflict", Bloomberg L.P.