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Lawsuit Plaintiff Byron Allen: Comcast Uses ‘Least Expensive Negro’ Al Sharpton to Cover Up Discrimination

Phillip Dampier March 4, 2015 Astroturf, AT&T, Comcast/Xfinity, Consumer News, HissyFitWatch, Public Policy & Gov't, Video Comments Off on Lawsuit Plaintiff Byron Allen: Comcast Uses ‘Least Expensive Negro’ Al Sharpton to Cover Up Discrimination
Allen

Allen: Comcast thinks “Give Sharpton $50,000 and a bucket of chicken and we’re good.”

A $20 billion racial discrimination lawsuit filed on behalf of black-owned media companies has uncovered alleged ties between executives of Comcast and Time Warner Cable and public officials who have allegedly helped cover up cable industry discrimination, price-fixing, collusion, and illegal payoffs.

Byron Allen, chairman and CEO of Entertainment Studios, in a blitz of eyebrow-raising interviews, accuses the two cable giants of putting minority-owned channels in the back of the bus, while falsely claiming black celebrities are the owners of minority networks that are actually controlled by former Comcast executives and private equity firms.

“Comcast has, in essence, created a ‘Jim Crow’ process with respect to licensing channels from 100 percent African American–owned media,” the suit reads, according to The Huffington Post. “Comcast has reserved a few spaces for 100 percent African American–owned media in the ‘back of the bus’ while the rest of the bus is occupied by white-owned media companies.”

The lawsuit, filed against Time Warner Cable, Comcast, the Urban League, the NAACP, former FCC commissioner Meredith Attwell Baker, and Al Sharpton’s National Action Network, claims the defendants are taking payoffs from the two cable giants and colluding to promote their business agendas and give minority support to their mergers and acquisitions.

“The industry spends about $50 billion a year licensing cable networks in which 100 percent African American-owned media receives less than $3 million per year in revenue from that $50 billion stream of money that is spent to acquire content,” he said.

Under normal circumstances, many African-American civil rights organizations would immediately raise a ruckus over the imbalance, but Allen alleges Comcast and Time Warner Cable have bought their silence, and in the case of Al Sharpton, his loyalty and support.

Byron Allen accuses Comcast of locking out 100% black-owned networks.

Byron Allen accuses Comcast of locking out 100% black-owned networks.

“Instead of spending real money with real, 100 percent African American-owned media, it is easier to give [Sharpton] $50,000 to give them a cover,” he said. “‘Give [Sharpton] $50,000 and a bucket of chicken and we’re good.'”

Allen called Sharpton the “least expensive negro” Comcast could find, and rewarded his loyalty with a $750,000 annual salary hosting a barely watched nightly show on Comcast-owned MSNBC.

“Why is Sharpton on TV every night on MSNBC? Because he endorsed Comcast’s acquisition of NBCUniversal,” Allen said. “He signed the memorandum of understanding back in 2010. He endorsed the merger. Next thing you know we’re watching him on television trying to form a sentence. Every night we have the privilege of watching adult illiteracy.”

Attwell-Baker is a defendant for her highly visible warp speed trip through D.C.’s revolving door, as the former Republican FCC commissioner seemed to be writing her resignation letter seconds after voting in favor of the Comcast-NBCUniversal merger, quickly accepting a high paid lobbying job with the cable company.

“President Obama promised us transparency, hope, and change,” he said. “And what happened in the Obama administration is former commissioner Meredith Attwell Baker voted for the merger of Comcast NBCU and then 90 days later took a much higher paying job with Comcast after granting them the merger. That was betraying the public’s trust as a public service.”

[flv]http://www.phillipdampier.com/video/HuffPost Byron Allen 2-27-15.mp4[/flv]

Watch the HuffPost Live interview with Byron Allen, who reveals who really owns the minority channels Comcast brags about. (7:37)

“President Obama has been bought and paid for. He has taken donations from Comcast. Comcast is his biggest contributor,” he added. “AT&T is one of his biggest contributors. Listen, Obama, your own FTC is investigating AT&T for throttling. How can you even consider them to buy DirectTV when you’re suing them? Is it because you took donations? Yes, Obama. Don’t even think about letting them merge until they settle this lawsuit and that lawsuit.”

Sharpton

Sharpton, in addition to being a regular supporter of Comcast’s various business agendas, also hosts a nightly show on Comcast-owned MSNBC, for which he is paid $750,000 a year.

“AT&T spent more money on Al Sharpton’s birthday party than they have on 100 percent African-American owned media combined,” Allen said. “He (Sharpton) should return the money because AT&T doesn’t even celebrate Martin Luther King Day as a national holiday. The employees there take it as a sick day.”

Apart from Allen’s inflammatory appearances on cable news, his lawsuit does bring to light several important new facts about Comcast’s claims it supports minority-owned channels. Allen’s lawsuit alleges many of those channels are actually secretly owned and controlled by former Comcast executives, private equity firms, and Wall Street banks.

  • Aspire is controlled by Leo Hindery and Leo Hindery is not black. They don’t pay Aspire any subscription fees. Aspire is free,” said Allen.
  • “Sean ‘P Diddy’ Combs’ network Revolt TV is controlled by a private equity firm called Highbridge Capital. The person who runs Highbridge Capital is a former Comcast executive named Payne Brown. Highbridge Capital is owned by JP Morgan. On the board of JP Morgan is Steve Burke, the number two executive at Comcast,” said Allen.

These revelations are important because Comcast promised to create and carry minority-owned channels as part of several conditions mandated by regulators to approve the 2011 acquisition of NBCUniversal. Allen claims Comcast has broken its commitment and instead created “token front” networks or minority network “window dressing” that feature well-known African-American celebrities that pose as owners of the networks, but in fact they are controlled by white-owned businesses.

The lawsuit claims Comcast carries only one 100% African-American owned and controlled network — the Africa Channel. But dig a little deeper and you find the network is owned by a former Comcast/NBCU executive that played a critical part organizing minority group support for the NBCUniversal buyout.

Comcast and Sharpton’s organization both dismissed the lawsuit as inflammatory and frivolous.

[flv]http://www.phillipdampier.com/video/CNN Sharpton called black pawn in white game 3-1-15.flv[/flv]

Byron Allen appeared on CNN’s Reliable Sources and called Sharpton “a black pawn in a very sophisticated white economic chess game. He’s being used by his white masters at Comcast and AT&T. He just needs to shut up and get in the bleachers.” (7:12)

Britain’s ITV May Be Sold to U.S. Cable/Entertainment Conglomerate, John Malone, or Even Comcast

Phillip Dampier September 4, 2014 Comcast/Xfinity, Competition, Consumer News, Liberty/UPC, Online Video Comments Off on Britain’s ITV May Be Sold to U.S. Cable/Entertainment Conglomerate, John Malone, or Even Comcast

itvIndependent television in Great Britain may soon be in the hands of U.S. citizen John Malone, former cable magnate and head of the giant Liberty Global cable and entertainment conglomerate that has swept across western Europe through a series of mergers and buyouts.

Deregulation has allowed the prospect of Britain’s biggest independent network, dwarfed only by the BBC, to soon be owned lock, stock, and barrel by Americans.

U.S. media conglomerates have already picked up the smaller Channel 5 network, purchased by Viacom in a surprise $757 million deal.

ITV produces an enormous number of television shows for its network of regional independent television stations across England, Scotland, Wales, and Northern Ireland. It is these productions that are attracting attention from content-hungry U.S. media companies.

Liberty Global logo 2012John Malone’s Liberty Global is seen as a leading contender, already owning a 6.4% stake in ITV acquired from BSkyB for $824 million. Liberty Global and Discovery Networks have maintained close association and jointly bid $930 million to acquire All3Media, the production arm of reality shows like “Undercover Boss.”

ITV’s own needs for programming have increased dramatically with the introduction of digital free-to-air television across the United Kingdom. ITV’s single network, operating for decades, is today accompanied by ITV 2, 3, 4, Citv, and Encore.

Malone hopes to build a European media empire, and has amassed holdings including a takeover of Virgin Media and cable systems in Germany and the Benelux region.

Malone has wooed some of ITV’s biggest investors — all American — including Fidelity, which has a nearly an 8% stake, BlackRock, with 4.9%, and the California hedge fund manager Brandes, which has 4.8%.

Malone may face other bidders, however, notably Comcast-NBCUniversal, which has not yet publicly revealed whether it is interested or not.

Another potential benefit of the transaction would be to allow its American buyer to avoid U.S. taxes by relocating their corporate headquarters to Great Britain in a controversial practice known as tax-inversion.

Cloudy Days for Bright House Networks Ahead? Comcast-Time Warner Merger Complicates Volume Discounts

(Original image: Musée McCord Museum - Re-envisioned by Stop the Cap!)

(Original image: Musée McCord Museum) — (Re-envisioned by Stop the Cap!)

Bright House Networks customers could face much higher cable television bills and a decline in technology upgrades thanks to a merger deal between two companies that should theoretically have no impact on them.

Bright House Networks has been an odd duck among cable companies since it was created from cobbled-together systems originally owned by Vision Cable, Cable Vision, TelePrompTer, Group W, Paragon and others. In the 1990s and early 2000s, Time Warner effectively ran the cable systems still owned by the Newhouse family. After the AOL-Time Warner merger, Advance/Newhouse decided to take back control of the management and operations of its cable systems, relaunching them under the Bright House Networks brand.

While the Newhouse family continues to assert its ownership and control of Bright House, it is highly dependent on Time Warner Cable to handle cable programming negotiations and broadband technology. That is why Bright House customers were sold “Road Runner” broadband service for many years – a brand familiar to any Time Warner customer. To this day, programming blackouts that affect Time Warner cable TV viewers usually also impact those subscribing to Bright House. Time Warner Cable also retains a minority ownership interest in Bright House.

Although the company is well-known in Indianapolis, Birmingham, suburban Detroit and Bakersfield, its presence is most recognized in central Florida, where it serves customers in Orlando, Daytona Beach, Lakeland, Tampa Bay, and many points in-between.

Despite the fact Bright House serves more than two million customers and is the sixth largest cable company in the country, it is small potatoes to major programmers like Comcast-NBCUniversal, Viacom, Disney, and others. All the best discounts go to satellite television providers and giant cable operators like Comcast and Time Warner Cable. Smaller operators pay substantially more.

That is where the merger between Comcast and Time Warner Cable comes in.

brighthouse1The federal government is likely to count Bright House’s 2.2 million customers as part of the Time Warner Cable family, at least as far as control of cable programming pricing is concerned. Despite Comcast’s voluntary commitment to keep its national share of the cable TV business under 30 percent with the merger of Time Warner, Comcast hasn’t taken seriously counting  the customers of the uninvited cousin – Bright House.

Logistically and legally, Comcast would assume control of Time Warner Cable’s interest in Bright House if the merger is approved by state and federal regulators. That may be too much for regulators to swallow.

Because Bright House is insignificant to Comcast and Time Warner Cable’s marriage plans, Comcast could end up terminating the arrangement, which even Bright House acknowledged would put it “at risk of losing the material benefits such agreements provide, include possibly raising costs for its customers and hampering its ability to compete effectively—a result that would certainly not be in the public interest.”

The Newhouse family has evidently seen the writing on the wall, hiring Wall Street investment bank UBS to advise whether it makes sense to sell. If Bright House does decide to hang out a “for sale” sign, Time Warner Cable has the right to bid first. But by that time, if things go according to plan, it might be Comcast ultimately swallowing up yet another large cable system.

Comcast’s Growing List of Owned/Operated Networks Gets Bigger With Time Warner Cable

psctest

This week’s revelation that a Comcast-controlled enterprise deliberately and consciously removed news content critical of Comcast and its public policy lobbying practices speaks to the impact media concentration has on news dissemination.

It also exposes the close relationship Comcast maintains with non-profit groups it financially supports, encouraging the kinds of positive letters about its operations the New York Public Service Commission can now find on file in this case.[1]

comcast twcThe group involved in the current controversy reportedly received $350,000 from Comcast and promptly began a vocal opposition campaign against Net Neutrality, an open Internet policy Comcast still opposes being enacted as official FCC policy.[2]

Professor Todd Gitlin of Columbia University called Comcast’s close relationship with the Minority Media and Telecommunications Council (MMTC) the “closest thing I can imagine to a political quid pro quo. The fact NewsOne saw fit to delete a report that they previously posted without any claim that anything was mistaken in the report tells you something about their commitment to open discourse.”

Jeff Cohen, an associate professor of journalism at Ithaca College, also commented on the NewsOne decision. “Just as corporate cash can corrupt civil rights groups, this incident shows how corporate power can corrupt and censor the news.”[3]

Time Warner Cable operates local news channels in most of the major New York cities it serves. These channels will also come under the umbrella of Comcast, giving it an even greater news voice through its NBC and Telemundo networks, MSNBC, local cable news operations, and owned and operated local broadcast affiliate stations in New York City.

In closing, as a reminder to the Commission, Comcast’s list of broadcast, cable and digital media assets is already enormous and will grow even larger if a merger with Time Warner Cable is approved.[4]

Comcast-NBCUniversal

Broadcast Television
NBC Television Network
NBC Entertainment
NBC News
NBC Sport Group
Universal Television (UTV)
Universal Cable Productions
NBCUniversal Domestic Television Distribution
NBCUniversal International Television Distribution

NBC Local Media Division
NBC New York (WNBC)
NBC Los Angeles (KNBC)
NBC Chicago (WMAQ)
NBC Philadelphia (WCAU)
NBC Bay Area (KNTV)
NBC Dallas/Fort Worth (KXAS)
NBC Washington (WRC)
NBC Miami (WTVJ)
NBC San Diego (KNSD)
NBC Connecticut (WVIT)
NBC Everywhere
LX TV
Skycastle Entertainment

Telemundo
KVEA (Los Angeles)
WNJU (New York)
WSCV (Miami)
KTMD (Houston)
WSNS (Chicago)
KXTX (Dallas/Fort Worth)
KVDA (San Antonio)
KSTS (San Francisco/San Jose)
KTAZ (Phoenix)
KNSO (Fresno)
KDEN (Denver)
KBLR (Las Vegas)
WNEU (Boston/Merrimack)
KHRR (Tucson)
WKAQ (Puerto Rico)
KWHY (Los Angeles) (Independent)

Television Channels
Bravo
Chiller
CNBC
CNBC World
Comcast Charter Sports Southeast
Comcast Sports Group
Comcast SportsNet Bay Area
Comcast SportsNet California
Comcast SportsNet Chicago
Comcast SportsNet Houston
Comcast SportsNet Mid-Atlantic
Comcast SportsNet New England
Comcast SportsNet Northwest
Comcast SportsNet Philadelhpia
SNY
The Mtn.-Mountain West Sports Network
CSS
Comcast Sports Southwest
New England Cable News (Manages)
NBC Sports Network
The Comcast Network
E! Entertainment Television
G4
Golf Channel
MSNBC
mun2
Oxygen Media
Cloo
Sprout
The Style Network
Syfy
Universal HD
USA Network
The Weather Channel Companies
Syfy Universal (Universal Networks International)
Diva Universal (Universal Networks International)
Studio Universal (Universal Networks International)
Universal Channel (Universal Networks International)
13th Street Universal (Universal Networks International)
Movies 24 (Universal Networks International)
Hallmark Channel (non-U.S.) (Universal Networks International)
KidsCo (Interest) (Universal Networks International)

Film
Universal Pictures
Focus Features
Universal Studios Home Entertainment

Parks and Resorts
Universal Parks and Resorts

Digital Media
DailyCandy
Fandango
Hulu (32%)
iVillage
NBC.com
CNBC Digital
Plaxo

Communications
XFINITY TV
XFINITY Internet
XFINITY Voice

Sports Management
Comcast-Spectator
Philadelphia Flyers
Wells Fargo Center
Global Spectrum (Public Assembly Management)
Ovations Food Services
Front Row Marketing Services
Paciolan
New Era Tickets (ComcastTIX)
Flyers Skate Zone

Other
Comcast Ventures, which is invested in numerous companies.

Time Warner Cable

Local channels`
Time Warner Cable News[5]
NY1: Manhattan, Bronx, Brooklyn, Queens, Staten Island
NY1 Noticias: Spanish language news for New York City
NY State of Politics Blog
TWC News Capital Region (Albany, Amsterdam, Saratoga and Berkshire counties)
TWC News Central NY (Syracuse, Ithaca/Cortland, Utica/Rome)
TWC News Hudson Valley
TWC News Northern NY (Watertown/Ft. Drum)
TWC News Southern Tier (Elmira/Corning, Binghamton/Oneonta)
TWC News Western NY (Buffalo, Finger Lakes Region, Jamestown, Rochester, and Batavia)

Regional Sports Networks
Metro Sports
Time Warner Cable Sports
Time Warner Cable SportsNet
Time Warner Cable Deportes
TWC Sports 32
SNY

Other Holdings
Adelphia — former cable television company in PA
NaviSite — cloud and hosting services company
Insight Communications — cable operator
DukeNet Communications — Fiber optic network
Time Warner Cable Internet
Time Warner Cable Media (advertising)

[1]http://documents.dps.ny.gov/public/MatterManagement/CaseMaster.aspx?MatterCaseNo=14-m-0183
[2]http://www.publicintegrity.org/2013/06/06/12769/civil-rights-groups-fcc-positions-reflect-industry-funding-critics-say
[3]http://www.republicreport.org/2014/comcast-affiliated-newsite-censored-my-article-about-net-neutrality-lobbying/
[4]https://archives.cjr.org/resources/index.php
[5]http://spectrumlocalnews.com/

The Washington Post’s Delusional Support of the Comcast-Time Warner Cable Merger Debunked

corporatewelfareIf you have started to confuse the Washington Post editorial page with that of the Wall Street Journal, you are not alone.

Under the stewardship of Fred Hiatt, WaPo’s editorial opinions have grown increasingly anti-consumer and pro-corporate at home and decidedly neoconservative abroad.

It’s the same newspaper that wholeheartedly supported the merger of Comcast and NBC-Universal in 2010. Let’s check whether they called that one right:

Entities that compete with NBC-owned cable channels fear that Comcast will relegate them to hard-to-find channel locations. Consumer advocates warn that Comcast will use its newfound power to raise subscription rates and stifle new voices on television and the Internet.

The same newspaper reported last week that Comcast refused to let Back9Network, a golf oriented network in direct competition with Comcast-owned Golf Channel, on its cable systems.

For years, Bloomberg TV — in direct competition with Comcast-owned CNBC — has been stuck in Channel Siberia, in some areas like Chicago dumped between Comcast’s promotional “barker” channel and “Leased Access.” CNBC enjoys Ch. 29, certain to attract more viewers than Bloomberg’s Ch. 102.

As Stop the Cap! reported yesterday, no cable company raises cable television rates more than Comcast, blaming programming rate increases that in several cases originate with Comcast-owned cable networks.

Regulators should scrutinize the proposed merger but should be skeptical of the critics’ claims. […] Advocacy groups have been poor prognosticators of the effects of large media mergers.

The Washington Post’s editorial accuracy record has more than a few blemishes, from its 2003 declaration Colin Powell’s “evidence” of Iraqi weapons of mass destruction was “irrefutable,” to suggestions that a wedding of Comcast and NBC Universal wouldn’t hurt anyone because the FCC was ready to manage any problems without pesky mandates or overbearing pre-conditions.

The FCC already requires cable operators to deal fairly with competitors. Its rules would require Comcast to give competitors access to NBC content on “reasonable” and “non-discriminatory” terms. The company would also be required to negotiate in good faith about carrying non-NBC channels. Competitors who believed that they were harmed by unfair dealing could have their complaints adjudicated by the agency. Critics of the Comcast-NBCU merger claim that these mechanisms are ineffective and slow. But the breakdown of the complaint system should not be used as an excuse to impose onerous conditions on one company. Instead, critics should push for an overhaul of the system.

The Bloomberg case, now three years old, remains unresolved. That should tell readers something about just how quickly the FCC gets around to dealing with these kinds of complaints. Comcast has been able to argue its decision to bury Bloomberg and keep Back9Network off its cable systems are examples of ‘good faith, reasonable decision-making that doesn’t discriminate.’ It sued to quash Net Neutrality, critical for online video competition, and won.

The Post editorial amusingly insists that Comcast’s merger plans should not be interrupted because of an ineffective complaint system that can’t or won’t promptly deal with Comcast’s ongoing abuse of the very non-discriminatory rules the editors declare as a reason to support the Comcast-NBCUniversal merger.

Many of the same fears of domination and manipulation were raised with the 2001 merger of AOL and TimeWarner; that megadeal crumbled after a few years. Comcast and GE, which will retain a 49 percent stake in NBCU, should be allowed to proceed, and regulators should do their jobs and watch the newly formed company carefully.

Phillip "The Post's Naivete is Showing" Dampier

Phillip “The Post’s Naivete is Showing” Dampier

The 2001 merger of AOL and Time Warner came at the last gasp of the dot.com boom. As the New York Times noted, “In May of 2000, the dot.com bubble began to burst and online advertising began to slow, making it difficult for AOL to meet the financial forecasts on which the deal was based. The world began moving quickly to high-speed Internet access, putting AOL’s ubiquitous dial-up service in jeopardy.”

The final unraveling of AOL Time Warner came about because the combined company, highly dependent on AOL (and its stock value), could not sustain its business model when nobody could figure out how to get paid for content in the online world. AOL’s dial-up Internet access business was also rapidly in decline as the country started moving towards broadband.

“The consumer has access to everything and now it’s going to be on a handheld device, so what I call the rolling thunder of the Internet started actually to eat its own, which was AOL,” writes the Times. “AOL was the Google of its time. It was how you got to the Internet, but it was using some old media business ideas that were undone by the Internet itself, and that’s why Google came along.”

The same sad story is not true for Comcast or Time Warner Cable (which was spun off from Time Warner, Inc. as an independent company as part of a restructuring in 2009.)

Both cable companies are in a better place than AOL-Time Warner:

  • AOL relied on dial-up and reseller access to some broadband providers — neither sufficiently lucrative to sustain AOL’s dot.com-days value. Comcast/TWC own their own broadband networks;
  • Verizon FiOS and AT&T U-verse are the only significant multi-city broadband competitors for the cable industry. U-verse remains challenged by its technological limitations and Verizon stopped expanding FiOS. Google Fiber has a totally insignificant market share and is likely to stay that way for several years. Google Fiber provides no competition in the northeast where Comcast and Time Warner Cable dominate;
  • Comcast and Time Warner Cable both oppose community-owned broadband competition and Time Warner has successfully managed to push legislation virtually banning network expansion in several states;
  • Comcast will both own and control the pipes and a significant amount of the content that crosses its broadband networks. At the time of the AOL-Time Warner merger, online video competition did not exist in a meaningful way.

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