Comcast, NBC Execs Defend Merger

The deal giving Comcast Corp. control of NBC Universal will help consumers and encourage investment and innovation in the media sector, the heads of both companies told Congress Thursday.

Comcast chairman, CEO, and president Brian Roberts and NBC Universal president and CEO Jeff Zucker appeared before the House Energy and Commerce Committee Thursday morning and the Senate Judiciary Committee’s antitrust panel Thursday afternoon.

In written statements they submitted before their appearances, they stressed that their combination was a vertical merger, not a horizontal one, and that it would lead to increased investment in NBC Universal, which could help the fourth-rated NBC television network.

In his written testimony, Roberts said the fact that the merger was primarily vertical, with little overlap between Philadelphia-based Comcast and NBC Universal, would mean “no massive layoffs.”

As for concerns that Comcast would favor NBC Universal channels on its systems over channels of competitors, he said the company is willing to discuss making current program-access rules binding on it, even though it is challenging some of them.

In their joint statement, Roberts and Zucker said NBC Universal’s assets will benefit by being under control of a company focused exclusively on the communication and entertainment industries, as opposed to their current parent, General Electric Co., which is an industrial and financial conglomerate.

Among other things, they reiterated their commitment to free over-the-air broadcasting and said the deal has the potential to boost NBC Universal’s interests in that area, which are the NBC and Telemundo networks and the broadcast TV stations NBC owns and runs.

They also said that even though Comcast operates the Fancast video site and NBC Universal has a 32 percent interest in Hulu, the companies aren’t in a position to restrict, much less dominate, the market for online video distribution due to their small share of it and the ease with which other companies can enter it.

Both statements are available on a website about the deal.