Yet More Media Consolidation is not the Cure to the Problems Caused by Media Consolidation

[Commentary] People are buzzing about possible new consolidation in the cable industry. The reason isn't hard to see: in a market that is already very concentrated, only the strong survive. Programming costs keep rising and larger cable companies would have more leverage in negotiations against media giants like Viacom and Disney. As ISPs, larger cable companies would be better able to drive hard bargains with Internet content companies when it comes to interconnection agreements, or operate their own online video services.

But bigger is not better for the public. It would be unfortunate if, in response to problems caused by excessive concentration up and down the media landscape, yet more companies consolidate. This "if you can't beat 'em, join 'em" approach might serve the short-term interests of shareholders but it would not be good for consumers or the market as a whole. Media consolidation inevitably leads to less choice and higher prices for consumers, and fewer outlets for independent and diverse creators.