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Consumers, Competition, and Consolidation in the Video and Broadband Market

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Consumers, Competition, and Consolidation in the Video and Broadband Market S. HRG. 111–949 CONSUMERS, COMPETITION, AND CONSOLIDATION IN THE VIDEO AND BROADBAND MARKET HEARING BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, AND THE INTERNET OF THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION MARCH 11, 2010 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PRINTING OFFICE 65–633 PDF WASHINGTON : 2011 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 12:39 Apr 08, 2011 Jkt 065633 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\GPO\DOCS\65633.TXT SCOM1 PsN: JACKIE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED ELEVENTH CONGRESS SECOND SESSION JOHN D. ROCKEFELLER IV, West Virginia, Chairman DANIEL K. INOUYE, Hawaii KAY BAILEY HUTCHISON, Texas, Ranking JOHN F. KERRY, Massachusetts OLYMPIA J. SNOWE, Maine BYRON L. DORGAN, North Dakota JOHN ENSIGN, Nevada BARBARA BOXER, California JIM DEMINT, South Carolina BILL NELSON, Florida JOHN THUNE, South Dakota MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi FRANK R. LAUTENBERG, New Jersey GEOGE S. LEMIEUX, Florida MARK PRYOR, Arkansas JOHNNY ISAKSON, Georgia CLAIRE MCCASKILL, Missouri DAVID VITTER, Louisiana AMY KLOBUCHAR, Minnesota SAM BROWNBACK, Kansas TOM UDALL, New Mexico MIKE JOHANNS, Nebraska MARK WARNER, Virginia MARK BEGICH, Alaska ELLEN L. DONESKI, Staff Director JAMES REID, Deputy Staff Director BRUCE H. ANDREWS, General Counsel ANN BEGEMAN, Republican Staff Director BRIAN M. HENDRICKS, Republican General Counsel NICK ROSSI, Republican Chief Counsel SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, AND THE INTERNET JOHN F. KERRY, Massachusetts, Chairman JOHN ENSIGN, Nevada, Ranking DANIEL K. INOUYE, Hawaii OLYMPIA J. SNOWE, Maine BYRON L. DORGAN, North Dakota JIM DEMINT, South Carolina BILL NELSON, Florida JOHN THUNE, South Dakota MARIA CANTWELL, Washington ROGER F. WICKER, Mississippi FRANK R. LAUTENBERG, New Jersey GEORGE S. LEMIEUX, Florida MARK PRYOR, Arkansas JOHNNY ISAKSON, Georgia CLAIRE MCCASKILL, Missouri DAVID VITTER, Louisiana AMY KLOBUCHAR, Minnesota SAM BROWNBACK, Kansas TOM UDALL, New Mexico MIKE JOHANNS, Nebraska MARK WARNER, Virginia MARK BEGICH, Alaska (II) VerDate Nov 24 2008 12:39 Apr 08, 2011 Jkt 065633 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\65633.TXT SCOM1 PsN: JACKIE C O N T E N T S Page Hearing held on March 11, 2010 ............................................................................ 1 Statement of Senator Rockefeller ........................................................................... 1 Statement of Senator Inouye .................................................................................. 2 Statement of Senator Hutchison ............................................................................ 3 Prepared statement .......................................................................................... 4 Statement of Senator Dorgan ................................................................................. 6 Statement of Senator Kerry .................................................................................... 18 Statement of Senator Ensign .................................................................................. 20 Letter, dated March 9, 2010 to Hon. John D. Rockefeller IV and Hon. Kay Bailey Hutchison, from Charles Segars, Chief Executive Officer, Ovation .......................................................................................................... 29 Letter, dated March 10, 2010 to Hon. Jay D. Rockefeller IV and Hon. Kay Bailey Hutchison, from Roger L. Werner, President and Chief Executive Officer, Outdoor Channel ............................................................ 30 Letter, dated March 10, 2010 to Hon. Jay D. Rockefeller IV and Hon. Kay Bailey Hutchison, from Stanley E. Hubbard, President and CEO, REELZCHANNEL ........................................................................................ 32 Statement of Senator Cantwell .............................................................................. 22 Statement of Senator Snowe ................................................................................... 23 Statement of Senator Thune ................................................................................... 25 Statement of Senator Begich .................................................................................. 27 Statement of Senator Johanns ............................................................................... 97 Statement of Senator Klobuchar ............................................................................ 99 Statement of Senator LeMieux ............................................................................... 104 Statement of Senator Wicker .................................................................................. 107 Statement of Senator McCaskill ............................................................................. 109 Statement of Senator Lautenberg .......................................................................... 111 WITNESSES Hon. Julius Genachowski, Chairman, Federal Communications Commission ... 6 Prepared statement .......................................................................................... 8 Hon. Christine A. Varney, Assistant Attorney General, Antitrust Division, U.S. Department of Justice ................................................................................. 10 Prepared statement .......................................................................................... 11 Brian L. Roberts, Chairman and Chief Executive Officer, Comcast Corpora- tion ........................................................................................................................ 34 Prepared statement .......................................................................................... 36 John Wells, President, Writers Guild of America, West ...................................... 54 Prepared statement .......................................................................................... 57 Dr. Mark Cooper, Director of Research, Consumer Federation of America on behalf of Consumer Federation of America, Free Press, and Consumers Union ..................................................................................................................... 60 Prepared statement .......................................................................................... 61 Colleen Abdoulah, President and Chief Executive Officer, WOW!; Board Mem- ber, American Cable Association ........................................................................ 72 Prepared statement .......................................................................................... 74 Christopher S. Yoo, Professor of Law and Communication, and Founding Director, Center for Technology, Innovation, and Competition, University of Pennsylvania .................................................................................................... 81 Prepared statement .......................................................................................... 83 (III) VerDate Nov 24 2008 12:39 Apr 08, 2011 Jkt 065633 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\65633.TXT SCOM1 PsN: JACKIE IV Page APPENDIX Gregory Babyak, Head, Government Relations, Bloomberg TV, prepared state- ment ...................................................................................................................... 123 Response to written questions submitted to Hon. Julius Genachowski by: Hon. John D. Rockefeller IV ............................................................................ 125 Hon. Daniel K. Inouye ...................................................................................... 125 Hon. Frank R. Lautenberg ............................................................................... 126 Hon. Mark Warner ........................................................................................... 126 Hon. Mark Begich ............................................................................................. 128 Hon. Jim DeMint .............................................................................................. 129 Hon. David Vitter ............................................................................................. 130 Hon. Sam Brownback ....................................................................................... 130 Hon. George S. Lemieux .................................................................................. 131 Response to written question submitted to Hon. Christine A. Varney by: Hon. Jim DeMint .............................................................................................. 132 Hon. David Vitter ............................................................................................. 132 Response to written questions submitted to Brian L. Roberts by: Hon. John Ensign ............................................................................................. 133 Hon. Sam Brownback ....................................................................................... 133 Hon. George S. LeMieux .................................................................................. 135 Response to written questions submitted to Dr. Mark Cooper by: Hon. Jim DeMint
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