Comcast-NBC Merger: The Good, The Bad, The Ugly (CMCSA)

In just a few short weeks, Comcast CMCSA and NBC could be united as one. Whether you like or loathe this idea, there's little doubt that the merger will result in massive changes for both companies. Let's take a look at what some of those changes might be, from the good and the bad to the downright ugly. The Good Before the proposed merger was announced, NBC only offered a selection of its shows on Comcast On Demand. The shows that were available were sold for as much as $1.99 an episode. But unlike iTunes AAPL downloads, the On Demand episodes were only a rental. After the merger was announced, NBC's entire lineup was added to Comcast On Demand. The four most recent episodes of Chuck, Community, Parenthood, 30 Rock and other NBC hits became available, and all of them were offered for free to subscribers of Comcast's digital cable service. This continued last summer, as old episodes were added weekly, allowing viewers to catch up on the shows that they missed. Right now, fans of The Event, Parenthood and other select shows can watch the entire first half of the season for free. Considering how dedicated Comcast is to winning the on-demand war, you can bet that the cable provider will utilize NBC's lineup – as well as shows from USA Network, Telemundo, and other NBC Universal properties – to lure consumers. This is great for existing Comcast customers, who should continue to enjoy free NBC shows On Demand. This may also be good for potential new customers, as other cable providers will have to increase their on-demand offerings to keep up. This is a win-win situation for everyone, regardless of the cable or satellite provider you choose. Even better for NBC, Comcast could give the network a much-needed boost in publicity and financial support. Unlike NBC's current owner, General Electric GE, Comcast's primary goal is video content. Without it, the company cannot survive. Thus, it is to Comcast's benefit that NBC not only survives, but thrives as a leading television network. The Bad Even if the aforementioned scenarios come true, you have to ask yourself: do we really want Comcast to control one of the only national, non-cable networks available? As a cable provider, this poses an incentive for Comcast to slowly push NBC's shows away from regular TV and into the realm of cable exclusivity. It may not happen tomorrow. It may not happen in five years. But it is not out of the question to assume it will happen. The Ugly If Comcast ever suffers financially, NBC is guaranteed to suffer as well. Even if NBC becomes a thriving enterprise in the next five years, Comcast will likely do what other corporations have done and spread the loss – as well as its cost-cutting measures – across every subsidiary it owns. This means that we would see fewer new shows from NBC, and there would be fewer chances for the existing shows to be renewed at the end of each season. Finally, if Comcast takes over NBC, you have to wonder what might become of Hulu. NBC was instrumental in Hulu's creation and proliferation. The network used one of its own stars (Alec Baldwin, star of 30 Rock) to help promote the online video site in 2009. With Comcast taking partial control of the online entity (which NBC co-owns with Fox NWS, Disney DIS and Providence Equity Partners), Hulu Plus – a subscription-based version of the site – is likely to become the norm. As it stands now, Hulu Plus is great; instead of forcing consumers to pay for the base slate of content (which is still free), subscribers are treated to an expanded offering. But remember: Comcast is all about content, and it would be naïve to think that the cable provider will sit by and allow Hulu to continue to give it away for free.