Baltimore Orioles and MASN Submit Expert Report by Sidak and Singer

July 22, 2005

On July 22, 2005, the Baltimore Orioles and MASN submitted an expert report by J. Gregory Sidak and Hal J. Singer to the Federal Communications Commission, which is considering whether to allow Comcast and Time Warner to acquire Adelphia. In their report, the authors explain that by denying access to its platform, a cable operator with sufficient downstream market power can impair an unaffiliated video programming provider's efficiency or even induce exit. The ultimate goal of such a strategy is to control the distribution of that content so that rival MVPDs cannot compete as effectively in the downstream market. Sidak and Singer conclude that the proposed merger would increase Comcast's subscriber base in several local markets for sports programming, and it would thereby increase Comcast's ability and incentive to deny access to unaffiliated sports programmers, with the aim of one day controlling that content and limiting its distribution to rival MVPDs, particularly direct broadcast satellite (DBS) providers. If successful, this strategy would force MVPD customers who demand local sports programming to choose Comcast over alternative downstream providers and to pay Comcast monopoly prices. Finally, the authors point out this strategy could undermine the planned entry by local telephone companies into video programming in geographic markets where the cable operator withholds its affiliated sports programming from rival MVPDs.

Download Report