Sen. Kohl questions NBC about Olympics pay-to-watch requirement

Senate Antitrust chair Senator Herb Kohl (D-WI) wrote a letter to NBC to express concern that some of its Internet coverage of the Vancouver Winter Olympic games was available only to paid subscribers.

Visitors to the NBC site who sought coverage of the Olympics - NBC and its sister stations were the exclusive domestic carriers of the games - had to first confirm they had a subscription to cable, satellite, or IPTV.

In a letter to NBC Universal CEO Jeff Zucker, Kohl asked whether the move was related to the proposed merger with Comcast:

"I fear that this practice of locking up certain content only for pay-TV subscribers may be a preview of what is to come," particularly in the context of Comcast Corp.'s bid to acquire General Electric Co.'s NBC, Senator Kohl wrote.

In response to the letter, NBC explained the decision to require a paid subscription was part of their "three part offering that has been structured to provide financial support" for Olympics coverage.

Kohl asked NBC several questions about the policy:

• Does this policy of requiring a pay TV subscription apply to content that is aired for free over-the-air on the broadcast network, and if so, why?
• Why has NBC not sought to charge consumers directly for accessing Olympic content on its website, rather than requiring a pay TV subscription?
• Has NBC received payments from outside media companies that have influenced NBC's requirement that consumers subscribe to a pay TV service?

NBC has not yet responded directly to these questions.

Kohl is concerned about future precedent in light of the proposed merger between the fourth-largest media network, NBC, and Comcast, the nation's largest cable provider.

Several Congressional Committees have held hearings on the Comcast-NBC deal. The Olympics coverage again raises the question whether this much control over content and distribution may eventually limit competition.

Senator asks NBC about Olympics site pay-TV link (Reuters)
Senate Antitrust Head Kohl Questions NBC’s Online Olympics News (Bloomberg)
Senator Questions NBC’s Olympics Web Strategy (Mediaweek)
Comcast and NBC - no way! (Speedmatters)
Anticipated Comcast-NBC Universal merger must be stopped (Speedmatters)
CWA, broad coalition raise concerns on Comcast-NBC mega-merger (Speedmatters)