TELECOM Digest OnLine - Sorted: Once Given Up for Dead, Comcast Defies Its Obits

Once Given Up for Dead, Comcast Defies Its Obits

Monty Solomon (
Sun, 21 Jan 2007 01:12:19 -0500


THREE years ago, with the cable television industry in the doldrums,
the Comcast Corporation's chairman, Brian L. Roberts, approached Mel
Karmazin, then the president of Viacom, with a modest proposal: give
Comcast the right to show programming from such Viacom properties as
CBS and MTV on the cable company's channels so it could have a leg up
on its rivals.

Mr. Roberts was accompanied by one of his senior managers and he
vividly recalls Mr. Karmazin's reaction. "He scrunched up his eyes,
looked at us and said, 'So you want us to give you all this stuff for
free and people will use it on video?' " Mr. Roberts recalled with a
laugh. "And we said, 'Yes, that's what we want.'

"No, no, no. Let me tell you want I would like to do," Mr. Karmazin
responded. "I would like to put my head down on the desk, close my
eyes, and when I count to 10 and look up, I want you both out of my

Mr. Karmazin, who now runs Sirius Satellite Radio, confirmed the
story. "We were a content company with valuable content, and every
opportunity we had to charge for my content, I would do it," he said.
"It was not in my DNA to give away valuable content for free."

Even today, Mr. Roberts recalls Mr. Karmazin's reaction as typical of
those misguided souls who fail to realize that consumers increasingly
have the ability to record and watch programs where and when they
want. "A person who wants to watch 'CSI' or 'Desperate Housewives'
when the programs are not on, they are going to do it anyway," he
observed. "As a content owner, you should want them to watch your

Brian Roberts has always conducted himself thus - with a
straightforward, plain-spoken, that's-the-way-the-world-works approach
to his company, his customers and his competitors. Those qualities
have stood Comcast in good stead as it emerges from a gloomy period in
which (even though it was making scads of money, thank you) some
analysts had written it off as a moribund, wire-bound behemoth doomed
to be eclipsed by more nimble telecommunications concerns.

Today, the entire cable business, and Comcast, the country's largest
cable company, are sitting pretty. Amid the scramble that will decide
which companies provide consumers with the flood of new media,
entertainment and communications services, cable suddenly looks to be
the winner. Analysts now say cable operators are better positioned
than their rivals. Until quite recently, however, that wasn't a
foregone conclusion because Wall Street - even discounting the myopia
that often distorts its vision - had good cause to be pessimistic.

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