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Murdoch tells senate panel he will help, not hurt consumers
Washington, June 19: News Corp chairman Rupert Murdoch, who is trying to convince regulators to approve his acquisition of the DirecTV satellite company, told senators that cable companies want to stave off competition from his company.
Washington, June 19: News Corp chairman Rupert Murdoch, who is trying to convince regulators to approve his acquisition of the DirecTV satellite company, told senators
that cable companies want to stave off competition from his company.
Murdoch testified before a senate judiciary subcommittee
yesterday about News Corp's bid to buy a 34 per cent stake in
Hughes Electronics Corp, a division of General Motors that
operates DirecTV.
The deal, valued at USD 6.6 billion, is being reviewed by Congress, the Federal Communications Commission and the Justice Department.
Regulators last year rejected a proposed merger between DirecTV and its chief competitor, Echostar Communications Corp.
Some consumer groups have opposed the new deal, as have several cable companies, arguing the media consolidation threatens to further drive up the price of pay television.
Bob Miron, chief executive of the Advance/Newhouse Communications cable company, said the News Corp-Hughes deal "will give News Corp unique and unprecedented power and incentive to raise the cost to consumers."
Cable companies and other competitors worry that, with control of DirecTV, News Corp. Will charge much higher rates for its programming, such as fox news channel, fox sports net and the FX channel, forcing cable operators to either pay the higher costs or lose customers to DirecTV.
Bureau Report
The deal, valued at USD 6.6 billion, is being reviewed by Congress, the Federal Communications Commission and the Justice Department.
Regulators last year rejected a proposed merger between DirecTV and its chief competitor, Echostar Communications Corp.
Some consumer groups have opposed the new deal, as have several cable companies, arguing the media consolidation threatens to further drive up the price of pay television.
Bob Miron, chief executive of the Advance/Newhouse Communications cable company, said the News Corp-Hughes deal "will give News Corp unique and unprecedented power and incentive to raise the cost to consumers."
Cable companies and other competitors worry that, with control of DirecTV, News Corp. Will charge much higher rates for its programming, such as fox news channel, fox sports net and the FX channel, forcing cable operators to either pay the higher costs or lose customers to DirecTV.
Bureau Report