Why a Comcast merger could be good for TWC customers

Time Warner Cable CEO Rob Marcus thinks the $45.2 billion megamerger with Comcast is a win for Time Warner Cable subscribers.

Speaking at the Deutsche Bank Media, Internet & Telecom Conference in Palm Beach, Fla., earlier this week, Marcus called the deal a "dream combination" that allows the companies to "innovate at a rapid pace."

I know what you're thinking: Of course he likes this deal. His company is getting bought out for $45.2 billion. And Marcus, who is paid in excess of $10 million a year, is the guy who spearheaded this tie-up in the first place. And there's little doubt he will profit handsomely from the acquisition.

But hear me out. He might actually be right.

As a Time Warner Cable customer for more than 15 years, I can attest that the service I've been getting for nearly two decades is nothing to write home about. And the bottom line is that the services that Comcast offers its customers today is simply better than what's available to Time Warner Cable consumers.

Related storiesTime Warner Cable CEO reiterates confidence in Comcast dealComcast to offer 'House of Cards' to Xfinity customersRereading the tea leaves in the Netflix-Comcast dealComcast extends 'Internet Essentials' program indefinitelyComcast to buy video-ad platform FreeWheel for about $320M

"Comcast is more innovative than any other operator when it comes to video service," said Erik Brannon, senior analyst for US Television at IHS. "By contrast Time Warner Cable has been less interested in things like converting analog subscribers to digital subscribers. And the implication is that on the whole their network is not quite as robust as Comcast's."

Even though Comcast hasn't made any promises about when or where Time Warner Cable customers will get Comcast's suite of services, it's clear these offerings will eventually make it to Time Warner Cable territory. And that could be a very good thing for Time Warner customers in spite of concerns that the cable giant is getting even larger.

"Some features and services people can expect relatively quickly after the merger," said Marcien Jenckes, executive vice president of consumer services for Comcast. "Today we're the leaders in terms of broadband speeds, TV content catalog and experience, as well as TV Everywhere. And Time Warner Cable customers can expect all of this over time."

It's hard not to be skeptical
I realize many consumers are skeptical of big mergers such as this one. And this particular merger is as big as they get. Comcast and Time Warner Cable are the No. 1 and No. 2 cable operators in the country. The combined company would control 33 million broadband connections. Together the companies will be in 19 of the 20 largest metro markets in the country. So it's easy to see why people are concerned and even skeptical of a deal that concentrates so much power in the hands of one company.

View the Original article