John Malone On Economics Of Delivering Content Over The Internet

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John Malone, Chairman of Liberty Media Corp LMCA, is a legend when it comes to the media and telecommunications business. The kind of successes Malone has had with his media investments are only attributable to the deep understanding he has of the business and that’s why when he speaks on the future of digital media, the Street sits back and listens.

 

Malone was recently interviewed by CNBC’s David Faber about the economics of delivering content on the Internet and regulatory intervention concerning the Internet.

 

“I suspect he doesn’t really wants to go there, he wants to go to some kind of negotiating solution that will suffice until there is competition, more competition and effectively allow the Comcast deal to go forward on some negotiated connectivity basis, which could in fact be superseded if in fact the Title II or something like Title II was pursued, that will b a big court challenge and we won’t know the answer to that for a couple of years.” Malone said.

 

When asked about whether the economics of acquisition of Time Warner Inc TWX by Comcast Corporation CMCSA change drastically in a Title II environment. Malone was of the view, “It depends on what kind of regulatory intervention, it could be very light, which will really be a non-discriminatory. The bottom-line on this is as the speed of the internet and amount of data on the internet, the consumer usage of internet continues to explode, somebody has to pay for the capacity that it takes to do this connectivity […].”

 

Malone feels that either it will be companies who are indirectly involved in dealing with customers or internet companies like Comcast themselves who will be charging for volumes of data at the consumers’ end. 

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Posted In: CNBCTechMedia
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