Wisconsin Senator Herb Kohl isn’t a fan of the idea that Hulu will fall partially into the hands of Comcast if the cableco purchases NBC Universal, and Senator Kohl is asking the FCC and Department of Justice to help keep Comcast’s grabby hands away.
Senator Kohl’s proposal to both agencies said Comcast should be kept out of Hulu after any NBCU purchase, and that it should sever all ties it gains through the acquisition within a year. Kohl worries that “over-the-top” Internet-delivered video poses a serious challenge to the existing business model of cablecos. If Comcast secures NBC’s 32% stake in Hulu, Kohl and others worry Comcast will then cripple the service through restrictions or viewing conditions that drive away customers.
“Millions of consumers have begun to utilize Internet Web sites such as Hulu to view full-length programming that has traditionally been shown on cable and broadcast television,” wrote Kohl. “And numerous companies are experimenting with new business models for delivering content directly to consumers over high speed internet connections – including television and Blu-ray disc manufacturers, Apple TV, Roku, Boxee, and Zillion TV, to give a few examples.”
Kohl said that roughly 800,000 users have cut the cord so far and that the Internet represents a strong threat to traditional pay-TV providers. These users are the crux of the debate, especially if Comcast feels like these fall more into the ‘lost revenue’ category instead of the ‘non-potential customer’ one. “After the acquisition, Comcast will have the incentive to exercise its influence as a part owner of Hulu to ensure it does not become a competitive threat to Comcast’s cable television services,” said Kohl.
Because of the potential conflict with its main business and its competing TV Everywhere subscription supplement, Kohl suggested that Comcast be forced to divest NBC’s stake in Hulu within one year and seeks a “requirement that Comcast not seek to prevent or coerce programmers from keeping their content off Internet Web sites [as a] condition of carriage on Comcast.”
Kohl’s comments echo many others’ and are increasing the pressure on Comcast, but they carry no authority. As we wait for the decisions of those that do have the power to influence and approve the deal, Comcast appears to be racking up foes.