• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

2

Trump pulls back after Iran crosses his red line as U.S. military breaks two-week streak of airstrikes amid talks for potential Hormuz deal

3

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

1

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'

2

Trump pulls back after Iran crosses his red line as U.S. military breaks two-week streak of airstrikes amid talks for potential Hormuz deal

3

College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind

With mega-merger, TWC-Comcast should make Aereo into an ally

By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
February 13, 2014, 10:29 PM ET
Add Fortune on Google for similar content.

FORTUNE — Comcast (CMCSA) faces an uphill battle in getting its $43 billion merger with Time Warner Cable (TWC) approved by antitrust regulators.

The issues are myriad, as plenty of commentators have pointed out. Speaking broadly, there’s the issue of the “unprecedented gatekeeper power” that the combined company will have. TWC and Comcast will be the country’s largest Internet service provider, largest video provider, a top phone provider, as well as a movie studio, a broadcaster, and it will control many cable channels. Some have predicted that the FCC will use net neutrality enforcement as a bargaining chip in the antitrust approval process, since Congress was not able to pass net neutrality as a law on its own.

On the broadcast side, Time Warner and Comcast will have to show that they don’t compete. They don’t actually operate in overlapping areas, and so the $45.2 billion merger isn’t going to consolidate power in any one region. But on a national level, they might have to show that there are other, non-Comcast, non-Time Warner options for consumers.

Enter an unlikely ally: Aereo.

Launched two years ago, Aereo brings broadcast television to cord-cutters over the Internet. The company does not pay retransmission fees to broadcasters because it has designed a clever “personal antenna” workaround.

MORE: What the Comcast-Time Warner deal says about the future of media

Aereo’s service is a threat to the broadcasters. Broadcasters have repeatedly sued Aereo for unauthorized retransmission, including Comcast’s NBC. Aereo has won two cases. Despite that, Comcast CEO Brian Roberts maintains that Aereo’s service is illegal. The latest lawsuit — ABC TV v. Aereo — is set to be heard by the U.S. Supreme Court on April 22.

But Thursday’s news changes things. Because Aereo offers consumers an alternative to Time Warner and Comcast, it might serve as a “maverick” for lawyers. Mavericks are smaller companies that disrupt a large company’s pricing strategy by charging less for competitive services. The issue came up when Anheuser Busch-Inbev acquired Grupo Modelo, because Modelo’s low prices kept Anheuser and competitor MillerCoors competitive. (The merger was approved anyway.)

Comcast has explicitly cited other streaming services as a reason it is not creating a TV monopoly (or, in industry parlance, a multichannel video programming distributor monopoly). From the deal’s press release:

A number of online businesses like Apple, Google, Amazon, Hulu, Netflix, and a host of smaller companies are entering the online video space and trying to position themselves as competitors. While we view online businesses as complementary to our business, previous antitrust concerns about further cable consolidation are truly antiquated in light of today’s marketplace realities.

Reading between the corporate doublespeak (are they competition or not?), Comcast is basically arguing that the existence of many content options means a little $42.5 billion merger among friends is no big deal.

Aereo isn’t named, but it is the only competitor that offers access to on-demand broadcast content. In making its antitrust case, Comcast will want to define the competitive landscape as broadly as possible. “Comcast would say there is all kinds of competition, not just from Dish Network (DISH) and satellites and telecoms, but from all these new companies coming up, including Aereo,” says Ronald D. Rotunda, professor of jurisprudence at Chapman University. He compared it to the auto industry. “If you decide the market for cars only includes companies that began in the U.S., there are only three car companies. But when you look at cars people can buy, there are two dozen or more companies from around the world.”

MORE: Will your clothing spy on you?

Even before the deal, there was an argument for broadcasters like Comcast to support Aereo. Rich Greenfield, an analyst with BTIG, has argued that Comcast would be better served to support Aereo because of its interests in a similar cloud service called Comcast X1. “Comcast is a big proponent of cloud DVR, and that has only been officially sanctioned in [one part of the country]. By buying Time Warner, you have a big expansion of its cloud-DVR service,” Greenfield said.

Aereo, backed by $97 million in venture capital from Barry Diller, IAC (IACI), and other venture firms, has been an enemy of the broadcast world since it launched in 2012. After today, it’s starting to look more like an ally.

About the Author
By Erin Griffith
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in

Kospi index and U.S. stock futures jump as new Hormuz talks send oil prices plunging amid Iran war pause while Wall Street awaits Fed meeting
Economytech stocks
Kospi index and U.S. stock futures jump as new Hormuz talks send oil prices plunging amid Iran war pause while Wall Street awaits Fed meeting
By Jason MaJuly 26, 2026
53 minutes ago
U.S. appeals court upholds block on Trump’s order to create a federal list of eligible voters and limit mail-in ballots only to people on that list
PoliticsElections
U.S. appeals court upholds block on Trump’s order to create a federal list of eligible voters and limit mail-in ballots only to people on that list
By Russ Bynum and The Associated PressJuly 26, 2026
4 hours ago
U.S. troops killed recently were moved from the Iran war death toll to ‘overseas operations’ after the Pentagon claimed ‘temporary data disruptions’
PoliticsIran
U.S. troops killed recently were moved from the Iran war death toll to ‘overseas operations’ after the Pentagon claimed ‘temporary data disruptions’
By Konstantin Toropin and The Associated PressJuly 26, 2026
4 hours ago
China’s Moonshot, Z.AI, and DeepSeek are challenging U.S. AI labs—and beating them on cost
MagazineChina
China’s Moonshot, Z.AI, and DeepSeek are challenging U.S. AI labs—and beating them on cost
By Nicholas GordonJuly 26, 2026
4 hours ago
Mideast oil may soon have no way out amid ‘everything everywhere all at once’ wars, but the crisis in refined products is even worse
Middle EastOil
Mideast oil may soon have no way out amid ‘everything everywhere all at once’ wars, but the crisis in refined products is even worse
By Jason MaJuly 26, 2026
5 hours ago
Traders are getting a new tool to wager on the biggest U.S. stocks
Investingstock trading
Traders are getting a new tool to wager on the biggest U.S. stocks
By Bernard Goyder, Katherine Doherty and BloombergJuly 26, 2026
7 hours ago

Most Popular

The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
Real Estate
The millennial generation is split in 2: an older crowd with boomer-style comfort, a younger set going 'back to the early 1900s'
By Nick LichtenbergJuly 25, 2026
2 days ago
Trump pulls back after Iran crosses his red line as U.S. military breaks two-week streak of airstrikes amid talks for potential Hormuz deal
Middle East
Trump pulls back after Iran crosses his red line as U.S. military breaks two-week streak of airstrikes amid talks for potential Hormuz deal
By Jason MaJuly 25, 2026
1 day ago
College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
Economy
College-educated women are snapping up the highest-earning men without college degrees, leaving the rest further behind
By Mia OsmonbekovJuly 26, 2026
15 hours ago
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
Success
An 11-year-old is cleaning his neighbors' trash cans for $10 each—he now has 100K followers as teens face the worst summer job market since 1948
By Orianna Rosa RoyleJuly 25, 2026
2 days ago
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
Economy
'The demographic dividend of the last 40 years is ending': J.P. Morgan says the world is running out of the two things that kept interest rates down
By Eleanor PringleJuly 24, 2026
3 days ago
Startups are installing tiny data centers in people’s homes to reduce strain on the beleaguered electrical grid
Environment
Startups are installing tiny data centers in people’s homes to reduce strain on the beleaguered electrical grid
By Sasha RogelbergJuly 25, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.