The Washington Post editorial page yesterday published a self-serving piece that openly advocated the approval of a merger between NBC-Universal and Comcast, creating one of America’s largest and most concentrated media companies.  But considering who owns the Post, the editorial might as well have been written by Comcast CEO John Roberts.

Containing only a non-specific disclosure that the newspaper “has interests in broadcast and cable television,” the editorial laments interference from “advocacy groups” that oppose the merger, claiming they are “poor prognosticators of the effects of large media mergers.”  The newspaper found no problems with media concentration in the United States, which itself should be an indictable offense, until one realizes the company that publishes the newspaper is, itself, a concentrated media company.

The Washington Post and Cable One are both owned by the same company.

The newspaper owns Cable One, a particularly nasty, low-rated cable operator that spied on its broadband customers and overcharges them for broadband service through a complicated Internet Overcharging scheme.  In fact, Cable One is the cable company that brought America the “$10/GB overlimit fee,” a low blow for the company’s customers on the so-called “economy tier,” which delivers pathetic 1.5Mbps service with a maximum limit of just 1GB!  This is the kind of cable company that proves sometimes dial-up service -is- better.

As far as the Post is concerned, the FCC will keep America safe from any uncompetitive market-power-enabled-abuses from a Comcast-NBC behemoth, itself a stunning statement from a newspaper that claims to know what is really going on in Washington.

Even our readers know complaining to the FCC about anything is like talking into a black hole.

When it comes to the Washington Post editorial page, profits come first, and Cable One can generate them with its own abusive pricing practices.

For the rest of the country, the irony of a dead-tree-format newspaper finger-pointing at advocacy groups (that don’t own cable companies), accusing them of getting the future wrong is a mighty rich irony.

The reality-based America I live in thinks media is already too-consolidated, too shallow, and increasingly abusive and too expensive.  The Post‘s advocacy of a mega-merger like Comcast-NBC only points to just how out of touch the newspaper is getting these days.  As Americans clamor for more media diversity, more competition, and more choices at lower prices, the Washington Post is just fine with the exact opposite.  But then you’d expect that from a company whose business plan depends on it.

Comcast wants you to know your bill for cable television is going to keep going up and up and up, even as the company spends more of your money on political lobbying and rebranding efforts.  As a result, more of you are pulling the plug on Comcast cable television subscriptions.

Speaking Sept. 15 at the Bank America Merrill Lynch media conference in Newport Beach, Calif., Comcast CFO Michael Angelakis warned that programming costs are continuing to increase, and the cable company is going to pass those increases on to its customers through rate hikes.

Angelakis admitted these costs represent one of Comcast’s toughest challenges, because the cable programming industry has become increasingly consolidated.  If Comcast won’t play ball over fees charged by a single network, a dozen or more other channels owned by that programmer could be withheld from the cable company.

The cable programming industry increasingly relies on “Three Musketeer”-package deals that renew carriage agreements for popular cable networks only if other co-owned channels come along for the ride.  Want USA, SyFy, and Bravo from NBC-Universal?  Then you better make room for the rest of their extended family like Sleuth, Chiller, and qubo.

Most years, these cable networks increase their wholesale prices, which shows up eventually on your Comcast bill in the form of a rate hike.

Subscribers have clamored for a-la-carte opportunities to pick and choose only channels actually watched, but that’s a scary proposition to companies like Comcast, who could see revenues plunge from a “pick your own channels” plan.  Instead, Angelakis told investors he’d rather pay less for networks that simply don’t attract many viewers.

“If programmers aren’t performing, we’d like to see rates go down,” he said.

The impact of those price increases is now more apparent than ever for the nation’s largest cable operator as subscribers reach a virtual ceiling in the price they’re willing to pay for cable television.

Comcast management reported adding 165,000 new customers after the digital television transition in the first half of 2009.  Many of those customers signed up for service with one year promotional deals that are now expiring, exposing customers to Comcast’s usual retail prices.  As a result, so far this year, 169,000 customers looking for basic cable service have canceled.

The cable industry is trying to reduce the revenue impact of subscriber losses by increasing prices for the customers that remain.  Comcast is no different, and Angelakis told investors the company’s financial performance can still be strong with increased average revenue per subscriber and cost-cutting.

One expense Comcast is not cutting: political lobbying.

In the second quarter of 2010 alone, Comcast spent $3.82 million dollars on lobbying activities — a 16 percent increase from the amount it spent at the same time last year, according to the U.S. House of Representatives clerk’s office.  Comcast made campaign contributions to elected officials, paid an army of lobbyists to promote its proposed Comcast-NBC merger, and made payments to fund front groups, astroturf projects, and say “thanks” to non-profit groups engaging in “dollar-a-holler” advocacy for the company’s political agenda.

Comcast also lobbied to stop broadband reforms like Net Neutrality, advocated roadblocks for potential competitors, added its two cents on how the government promotes broadband expansion, and sought to inhibit shareholder rights to influence executive pay.

Comcast’s biggest innovation this year is — changing its name.  The march towards rebranding the company’s cable TV, broadband, and phone products continues, with 63 percent of its cable systems now flying the Xfinity flag.  Comcast hopes customers will take a second look at Comcast’s product lineup once they see the new name.  Kevin Upton, a senior lecturer in marketing at the University of Minnesota’s Carlson School of Management says companies can use rebranding to suggest the introduction of new products and services.

Starting Monday, Minneapolis and St. Paul, Minn., customers will find the Xfinity name plastered all over the place, and Upton noted Comcast’s rebranding effort worked on him.

When Upton got a flyer about Xfinity recently, he thought it would offer faster Internet service than Comcast.

“It called attention to itself, and it got me to pay attention to the stuff I’m already overpaying for anyway.”

[flv]http://www.phillipdampier.com/video/CNBC Inside Comcasts Quarter 7-28-10.flv[/flv]

CNBC covered Comcast’s second quarter financial results back on July 28th in this report.  (3 minutes)

The dollar-a-holler crowd that takes “charitable” contributions from Comcast is enjoying an abundance of riches thanks to your cable bill payment and their corporate agenda to get the NBC-Comcast merger approved. Everyone is coming out to celebrate the deal — from the United Way in Denver to a Texas sheriff and a group opposing grave desecration.  Regular Stop the Cap! reader Bones sent word Comcast’s Money Party is just getting started.

The Wrap notes Comcast has donated $1.8 billion in cash and in-kind largess to non-profit organizations since 2001, many of which will helpfully throw 44 cents back in the form of supportive letters to the Federal Communications Commission telling them to do whatever America’s largest cable company wants.

It’s all a part of the dirty little game some non-profits play with corporate benefactors to work against your consumer interests.  Even worse, many of these same groups will also ask -you- for a donation as well.  If Comcast keeps raising its rates, perhaps the best option in response to those playing on Comcast’s side is to tell them you already sent a donation… to Comcast.

This year’s circus of money has generated a torrent of correspondence to the FCC that is often nothing less than absurd.

The Wrap found one letter from the president of the Washington, D.C.-based Cherry Blossom Festival.  Did you know cherry blossoms were deeply committed to seeing Comcast and NBC get married?

“Over the past few years, Comcast has generously donated services and sponsorship to our events,” Diana Mayhew, president of the Washington, D.C.-based Cherry Blossom Festival, wrote to the Federal Communications Commission in July. “I believe as Comcast teams up with NBC, it will continue to be a great partner for the Cherry Blossom Festival.”

But it gets much sillier.

Stop the Cap! has compiled just a sampler of comments from several interest groups all in a hurry to get their letters into the public record.  Most were bad, but we also include an example of a letter from a group that didn’t simply applaud the deal.  Our comments are in italics:

National Puerto Rican Coalition: “In our view, […] this joint venture will lead to valuable benefits and unprecedented advances in media diversity for Hispanics and other people of color.”

Do you think the fact NPRC also received valuable funding from the Comcast Foundation might have had something to do with their cheerleading letter?

Cuban American National Council
Hispanic Federation
League of United Latin American Citizens
National Council of La Raza
National Hispanic Media Coalition
SER-Jobs For Progress National, Inc.: “We strongly believe that the Memorandum of Understanding between Comcast and NBCU and the Hispanic Leadership organizations seeks to promote the goals of expanding economic opportunity for Hispanic families and preserving and enhancing programming for Hispanic audiences, and view these commitments as stepping stones to a more responsive and responsible corporate citizenry.”

These groups, many of which also receive direct funding from Comcast, went over the top cooking up a “Memorandum of Understanding” (or is it a shakedown agreement) to land positions on Comcast’s “Advisory Councils.”  These Latino groups managed to get their travel and other expenses paid for by Comcast to attend twice-yearly meetings to discuss diversity issues.  Their agreement also allows this coalition to empower itself, by getting Comcast to agree to call them when looking for “qualified” Latino law firms, suppliers and vendors, and even top management.  That provides these groups power and influence as interested candidates appeal to them to gain a spot on the “qualified” list.  But it goes even further — Comcast has to add several “qualified” (identified with the help of these groups) Latino-owned cable channels to the lineup whether subscribers want them or not.

This agreement was marked “confidential,” but you can read a copy right here.  By the way, it’s no surprise the League of United Latin American Citizens is on this list.  They’ll peddle themselves out to any Big Telecom company that comes with a check in hand, especially AT&T.

Gay & Lesbian Alliance Against Defamation (“GLAAD”): “Given the weight and significance of the Comcast/NBCU merger, GLAAD urges the FCC to ensure that the community of lesbian, gay, bisexual and transgender Americans are not forgotten in its calculus of diversity, and that the stories and visibility of LGBT people and their families are held up as part of the valued diversity in its discussions, analysis and recommendations in this merger.

GLAAD’s filing was an example of a respectable comment letter filed by a minority interest group.  They didn’t take a strong position for or against the merger.  Instead, they shined a light on the issues that concern the LGBT community and said the FCC should take a closer look.  That’s fair and appropriate.

Hmong New Life Radio Broadcasting
Hmong Women’s Heritage Association
Hmong Report At 7
Lao Family Community of Fresno
Sacramento Asian-American Minority, Inc.
National Hmong Grave Desecration Committee: “We believe Comcast’s sensitivity to our need for such programming speaks extremely well of them as a company. It is a clear indication that they will continue to exhibit their sense of the responsibility to underserved communities such as ours subsequent to a merger with NBC-Universal.”

These six groups must be new to the influence game because they each sent nearly identical (often word for word) letters to the FCC in support of the merger.  On the ludicrous scale, nothing beats the National Hmong Grave Desecration Committee finding itself compelled to write a formal letter to the FCC on a multi-billion dollar cable-broadcast merger.

Here's something to remember us by....

Mile High United Way: “Comcast has provided sizeable foundation grants for DRH projects and other meaningful financial donations to other United Way programs. In addition to philanthropy and volunteerism, the company has also provided us with top notch communications support. The company has helped us create video presentations for our key fundraising efforts; it has placed public service announcements on its cable stations in an attempt generate attention and attendance for our events; it has also provided time on its Comcast Newsmakers public service broadcast to publicize our events, our programs and our people.”

That’s all wonderful, but none of it justifies or even argues for a merger between a cable and television network.  This is nothing more than dollar-a-holler advocacy at work — United Way gets goodies from Comcast and now they are returning the favor.  What United Way won’t get from our family is another nickle.  After all, our contributions to United Way pay for this group’s time and effort peddling Comcast’s corporate agenda to the FCC.  And I thought the United Way was supposed to be a charitable organization, not a lobbyist advocating for Comcast.

Sheriff Adrian Garcia – Harris County (Tex.): “Comcast is not just a business operating in Harris County, it is a partner in our effort to be a better and safer community. I hope the FCC will keep all that Comcast does in mind and permit the NBC Universal partnership to move forward.”

Voters in Harris County might want to keep this letter in mind come election time.  This shockingly inappropriate involvement by a law enforcement agency willing to stick its nose in a corporate merger is inexcusable.  Perhaps Harris County needs a sheriff that will spend time fighting crime, not typing up letters to benefit the cable company.  Oh, and by the way Sheriff — Comcast really is just a business.

The National Zoo: “In sum, Comcast has proven to be a reliable partner that cares about our work here at the Zoo in promoting innovative science, educating children, and ultimately establishing a beautiful urban park offering families excitement as well as a welcome place to enjoy nature. We deeply care about our engagement with our local friends and families here in Washington, D.C. and appreciate the fact that Comcast shares our commitment to serving the local community.”

That’s grand, but has nothing to do with a corporate merger proposal.  Comcast’s subscribers are the ones who ultimately care about the Zoo.  It’s their money that paves the way for all those good works.

Center for the Homeless: “I hope you will consider this testimony in favor of Comcast and its strong sense of involvement in American communities and service to those who need it most. Comcast is a true partner in the important work that we do.”

Another group whose mission should be helping the homeless is devoting time and resources to sending love notes to the FCC on behalf of a giant cable company.  By the way, none of the clients your group serves can afford Comcast’s prices.

Partnership for a Drug Free New Jersey: “I look forward to our continued partnership with Comcast and am excited to welcome NBC onto their team. We will continue to reach teens all over New Jersey to help ensure that they remain drug-free and continue to bring the message of hope to so many of our state’s residents.”

The excitement is even greater when you recognize Comcast and the national umbrella group Partnership for a Drug Free America can’t thank each other enough.  The non-profit explained it all in a newsletter: “At the Partnership’s third annual Making A Difference gala held this winter in the Grand Ballroom of the Waldorf-Astoria Hotel, more than 850 guests gathered to honor Ralph J. Roberts, founder and chairman of the executive and finance committee for the Comcast Corporation, and his son, Brian L. Roberts, chairman & CEO of Comcast. Chairing the gala were Geraldine B. Laybourne, chairman & CEO of Oxygen Media and James B. Lee, Jr., vice chairman of JPMorgan Chase & Co. […] The evening generated over $2.1 million to support the Partnership’s programs for children, parents and families.”

The accolades should have stopped at a “thank you” card, not with the unseemly way this group returns the favor by advocating for a merger deal involving one of their benefactors.

Why would bloggers imply a relationship between Rightnetwork and Comcast?

Simon, a frequent reader of Stop the Cap! dropped us a note to let us know reports that Comcast was backing a new right wing cable network might be premature.

Talk about passing the buck.  Comcast this morning issued a statement on their company blog denying any involvement in the Rightnetwork project Stop the Cap! and other blogs reported over the weekend:

Over the weekend there were some stories on a number of blogs about a new network called Right Network, and some of these rumored that Comcast might be involved as an investor, partner or distributor. Here is a statement from Comcast to clear up any confusion:

“The blog reports that Comcast is an investor in, or partner of the Right Network are inaccurate. We have no partnership with this venture and have no plans to launch or distribute the network. As we have done with hundreds of other content providers, we have met with the network’s representatives. We do carry a number of independent networks on Comcast representing a wide variety of interests and diverse viewpoints.”

"Through partners including Comcast..." prominently appears in Rightnetwork's own promotional literature (click to enlarge)

How could we have been so wrong?  🙂

1. The network’s founder is Ed Snider, chairman of Comcast-Spectacor, whose parent company is guess-who?
2. Rightnetwork’s own promotional “lookbook” (which they took down this morning, but which you can still get from us right here) says, “On television, through partners including Comcast….”

Somehow, Comcast forgot to call out Rightnetwork for making claims they absolutely don’t want to have associated with their company at such a politically-sensitive time, what with the Comcast-NBC merger on the table and all.  It was much easier to blame the bloggers.

It’s not as if the idea of Comcast launching a right wing network comes straight out of fantasy land.  In fact, Politico got David L. Cohen, Comcast’s executive vice president to toy with launching its own right-wing network to compete with Fox News:

A major Democratic donor and fundraiser, Cohen — who oversees the company’s Washington operation spent last week pitching the deal to regulators, editorial boards and reporters —described himself as “a news junkie” who watches MSNBC, CNN and Fox News. He didn’t dismiss out of hand the possibility of launching a right-leaning network to compete with Fox News, and he said Comcast wouldn’t tamper with NBC or MSNBC’s operations (Olbermann told POLITICO, “I’m confident they know exactly what they’re doing and exactly how valuable a commodity MSNBC has become”).

Cohen explained that Comcast’s job is not “to shape the content that people receive. It is our job to facilitate the delivery of a diverse set of voices and opinions to consumers, and we believe it’s up to the consumer to decide which of that content he or she would like to listen to or watch and which of that content he or she would like to avoid.”

Rightnetwork has remained silent on the matter, so we’ll apologize on their behalf for misleading you.

Rightnetwork's logo, which is actually kind of creepy, would be more true to itself if that "R" was replaced with a "C" for Comcast -- its true progenitor.

When your corporate message has to pass through a media filter, your talking points can get lost along the way.  Comcast has decided to cut out the middleman by launching a new right-wing, pro-corporate cable network that seeks to co-opt the tea party movement for its own agenda.

Rightnetwork, launching this summer, seeks to reach “Americans who are looking for content that reflects and reinforces their perspective and worldview,” according to its promotional material.  Featured prominently in the network’s promotional materials are tea party events and those that promote a pro-corporate agenda.  The network’s on-air talent is embedded in the national tea party tour that has been making its way across the country, which gives you a sense of where the network’s early emphasis will lie.

Comcast sheds any pretense of staying above the political fray and jumps in with both feet to deliver its business agenda to viewers.

“The lineup focuses on entertainment with Pro-America, Pro-Business, Pro-Military sensibilities — compelling content that inspires action, invites a response, and influences the national conversation,” says the network’s promotional “lookbook.”

“We’re creating a welcome place for millions and millions of Americans who’ve been looking for an entertainment network and media channel that reflects their point-of-view. Rightnetwork will be the perfect platform to entertain, inform and connect with the American majority about what’s right in the world,” says Ed Snider, chairman of Comcast-Spectacor.

Reviewing promotional clips for the network’s planned shows, something else is readily apparent — wedding a corporate agenda with a political movement in hopes of currying favor with those that might return the favor one day.

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One of the network’s most prominent planned shows is “Running,” which is little more than a political infomercial for Republican/tea party candidates.  One of the first targets Comcast-Spectacor has in mind is Rep. Henry Waxman (D-California).  Waxman is characterized as “infesting” his Congressional seat in the program.

Waxman, coincidentally, is also a big political foe of Comcast, favoring Net Neutrality and deeply concerned about media concentration issues, something the proposed Comcast-NBC merger would exacerbate.  Rightnetwork has effectively provided millions of dollars in free publicity to Ari David, Waxman’s opponent.  Should David win the seat, he will have Comcast to thank for helping make it possible.

Running‘s featured candidates:

• Ari David, Republican running against Henry Waxman who writes: “Capitalism is under attack from the progressive left.”
• Chris Simcox, Republican who ran against John McCain in the primary, who he called: “a sinister element, a progressive socialist masquerading as the leader and conscience of the Reagan Republican Party.”  Wants to promote free enterprise in a “post-McCain era.”
• Clint Didier, a Republican running against Sen. Patty Murray in Washington.  He uses his Rightnetwork coverage as a campaign ad on his website.
• Donna Campbell, a Republican running for a Texas congressional seat on the platform of deregulating business.
• Republican Jim Gibbons, a vice president of Wells-Fargo Bank who is running for Congress in Iowa on a platform of deregulating business, even after the already-deregulated banking industry caused the Great Recession.
• Republican John Dennis, running against Nancy Pelosi in California, who showcased an anti-Net Neutrality ruling on his Facebook page with a fan base whose views were best summed up by one writer: “If a private internet service provider wants to restrict certain types of content or opinions moving across their wires, then that should be their prerogative.”  That shrugging off of censorship is ironic coming from a supporter of the “pro-Liberty Republican” candidate.

Anyone think there is a “yes” vote for Net Neutrality or oversight of the cable industry and big media mergers among this crowd?

This isn’t Comcast’s first effort to curry favor with conservatives, who seem most likely to support the cable company’s political agenda.  Last September, Comcast and AT&T sponsored a U.S. Chamber of Commerce forum keynoted by Fox News personality Glenn Beck.  The U.S. Chamber of Commerce, itself implicated in notorious astroturfing efforts, is a strong opponent of Net Neutrality and broadband oversight.

The worst part is saved for last.  Who pays for this pro-corporate hackery?  You do, as part of your monthly cable bill, whether you want the corporate point of view on your basic cable lineup or not.

That’s just one more reason why the Comcast-NBC merger is such a bad idea.  It places enormous resources at the disposal of a company that has no qualms about using them to advance its own political agenda at your expense.