    [House Hearing, 111 Congress]
    [From the U.S. Government Publishing Office]

                    COMCAST AND NBC UNIVERSAL: WHO BENEFITS?

    =======================================================================

                                    HEARING

                                   BEFORE THE

          SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, AND THE INTERNET

                                     OF THE

                        COMMITTEE ON ENERGY AND COMMERCE
                            HOUSE OF REPRESENTATIVES

                         ONE HUNDRED ELEVENTH CONGRESS

                                 SECOND SESSION

                                   __________

                                  JULY 8, 2010

                                   __________

                               Serial No. 111-142

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

          Printed for the use of the Committee on Energy and Commerce

                            energycommerce.house.gov

                                    _____

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                        COMMITTEE ON ENERGY AND COMMERCE

                          HENRY A. WAXMAN, California
                                     Chairman
    JOHN D. DINGELL, Michigan            JOE BARTON, Texas
      Chairman Emeritus                    Ranking Member
    EDWARD J. MARKEY, Massachusetts      RALPH M. HALL, Texas
    RICK BOUCHER, Virginia               FRED UPTON, Michigan
    FRANK PALLONE, Jr., New Jersey       CLIFF STEARNS, Florida
    BART GORDON, Tennessee               NATHAN DEAL, Georgia
    BOBBY L. RUSH, Illinois              ED WHITFIELD, Kentucky
    ANNA G. ESHOO, California            JOHN SHIMKUS, Illinois
    BART STUPAK, Michigan                JOHN B. SHADEGG, Arizona
    ELIOT L. ENGEL, New York             ROY BLUNT, Missouri
    GENE GREEN, Texas                    STEVE BUYER, Indiana
    DIANA DeGETTE, Colorado              GEORGE RADANOVICH, California
      Vice Chairman                      JOSEPH R. PITTS, Pennsylvania
    LOIS CAPPS, California               MARY BONO MACK, California
    MICHAEL F. DOYLE, Pennsylvania       GREG WALDEN, Oregon
    JANE HARMAN, California              LEE TERRY, Nebraska
    TOM ALLEN, Maine                     MIKE ROGERS, Michigan
    JANICE D. SCHAKOWSKY, Illinois       SUE WILKINS MYRICK, North Carolina
    HILDA L. SOLIS, California           JOHN SULLIVAN, Oklahoma
    CHARLES A. GONZALEZ, Texas           TIM MURPHY, Pennsylvania
    JAY INSLEE, Washington               MICHAEL C. BURGESS, Texas
    TAMMY BALDWIN, Wisconsin             MARSHA BLACKBURN, Tennessee
    MIKE ROSS, Arkansas                  PHIL GINGREY, Georgia
    ANTHONY D. WEINER, New York          STEVE SCALISE, Louisiana
    JIM MATHESON, Utah
    G.K. BUTTERFIELD, North Carolina
    CHARLIE MELANCON, Louisiana
    JOHN BARROW, Georgia
    BARON P. HILL, Indiana
    DORIS O. MATSUI, California
    DONNA M. CHRISTENSEN, Virgin
        Islands
    KATHY CASTOR, Florida
    JOHN P. SARBANES, Maryland
    CHRISTOPHER S. MURPHY, Connecticut
    ZACHARY T. SPACE, Ohio
    JERRY McNERNEY, California
    BETTY SUTTON, Ohio
    BRUCE L. BRALEY, Iowa
    PETER WELCH, Vermont
          Subcommittee on Communications, Technology, and the Internet

                             RICK BOUCHER, Virginia
                                     Chairman
    EDWARD J. MARKEY, Massachusetts      FRED UPTON, Michigan
    BART GORDON, Tennessee                 Ranking Member
    BOBBY L. RUSH, Illinois              CLIFF STEARNS, Florida
    ANNA G. ESHOO, California            NATHAN DEAL, Georgia
    BART STUPAK, Michigan                JOHN SHIMKUS, Illinois
    DIANA DeGETTE, Colorado              GEORGE RADANOVICH, California
    MICHAEL F. DOYLE, Pennsylvania       MARY BONO MACK, California
    JAY INSLEE, Washington               GREG WALDEN, Oregon
    ANTHONY D. WEINER, New York          LEE TERRY, Nebraska
    G.K. BUTTERFIELD, North Carolina     MIKE FERGUSON, New Jersey
    CHARLIE MELANCON, Louisiana
    BARON P. HILL, Indiana
    DORIS O. MATSUI, California
    DONNA M. CHRISTENSEN, Virgin
        Islands
    KATHY CASTOR, Florida
    CHRISTOPHER S. MURPHY, Connecticut
    ZACHARY T. SPACE, Ohio
    JERRY McNERNEY, California
    PETER WELCH, Vermont
    JOHN D. DINGELL, Michigan (ex
        officio)

                                 C O N T E N T S

                                  ----------
                                                                       Page
    Hon. Rick Boucher, a Representative in Congress from the
      Commonwealth of Virginia, opening statement....................     1
        Prepared statement...........................................     3
    Hon. Steve Buyer, a Representative in Congress from the State of
      Indiana, opening statement.....................................     5
    Hon. Bobby L. Rush, a Representative in Congress from the State
      of Illinois, opening statement.................................     6
        Prepared statement...........................................     9
    Hon. Anna G. Eshoo, a Representative in Congress from the State
      of California, prepared statement..............................   216

                                   Witnesses

    Hon. Maxine Waters, a Representative in Congress from the State
      of California..................................................    12
        Prepared statement...........................................    15
    Jonathan Jackson, Rainbow PUSH Coalition.........................    34
        Prepared statement...........................................    36
    Will Griffin, President and Chief Executive Officer, Hip Hop
      OnDemand.......................................................    40
        Prepared statement...........................................    44
    Samuel R. DeSimone, General Counsel, Earthlink...................    50
        Prepared statement...........................................    52
    Paula Madison, Executive Vice President, Chief Diversity Officer,
      NBC Universal..................................................    62
        Prepared statement...........................................    64
    Joseph W. Waz, Jr., Senior Vice President, External Affairs and
      Public Policy Counsel, Comcast Corporation.....................    74
        Prepared statement...........................................    77

                               Submitted Material

    Letter of July 6, 2010, from CoLours TV to Mr. Boucher...........   217
    Comcast and NBCU's Summary of Diversity Commitments..............   218

           FIELD HEARING ON COMCAST AND NBC UNIVERSAL: WHO BENEFITS?

                                  ----------

                             THURSDAY, JULY 8, 2010

                  House of Representatives,
    Subcommittee on Communications, Technology,
                                      and the Internet,
                              Committee on Energy and Commerce,
                                                        Washington, DC.
        The subcommittee met, pursuant to call, at 9:00 a.m., in
    Room 2525, Dirksen Federal Building and Courthouse, 219 South
    Dearborn Street, Chicago, Illinois, Hon. Rick Boucher [chairman
    of the subcommittee] presiding.
        Members present: Representatives Boucher, Rush and Buyer.
        Also present: Representative Waters.

      OPENING STATEMENT OF HON. RICK BOUCHER, A REPRESENTATIVE IN
               CONGRESS FROM THE COMMONWEALTH OF VIRGINIA

        Mr. Boucher. Good morning to everyone. The Subcommittee on
    Communications, Technology and the Internet will come to order.
        Today, at the suggestion of our subcommittee colleague, Mr.
    Rush, we are in Chicago to conduct the subcommittee's second
    hearing on the proposed combination of two of our nation's
    largest media and entertainment companies Comcast and NBC
    Universal.
        I appreciate the outstanding contributions that Congressman
    Rush makes to the work of our committee. He is Chairman of our
    Subcommittee on Commerce and Consumer Protection, and in that
    role I've had an opportunity to work closely with him as we
    have together worked to fashion a set of privacy guarantees for
    internet users. And, of course, he is a member of this
    Subcommittee and makes a truly valuable contribution to our
    work. And I want to thank Congressman Rush and his staff for
    their excellent help in making the arrangements for today's
    hearing. It's truly been a pleasure for me to have the
    opportunity to be here. And I know that our focus today on the
    Comcast-NBC Universal Merger will be aided very much by the
    testimony that we receive from our witnesses this morning.
        Comcast is the nation's largest multi-channel video program
    distributor, the largest retail broadband provider, and the
    third largest home telephone service provider, as well as the
    owner of numerous cable channels and regional sports networks.
        As measured by annual revenues, NBC Universal is the
    nation's fourth largest media and entertainment company. It
    owns the NBC and Telemundo television networks, television
    broadcast stations in some of the largest markets in the United
    States, cable channels, a movie studio, as well as an interest
    in the online video programming provider, Hulu.com.
        The key question for this Subcommittee, as well as for the
    FCC, and the U.S. Department of Justice who are reviewing this
    proposed combination is how the proposed combination will
    affect consumers. And, of course, both of these companies
    deliver a range of services, and the question is with regard to
    those services how will consumers be affected.
        Some combinations benefit consumers by enabling a more
    efficient delivery of new and better products and services, but
    there also is the potential for consumer harm due to a
    limitation of choices that are available to consumers, or by
    limiting competition in a way that makes services more
    expensive than they would be in an open market.
        In our previous hearing, we examined the potential harms
    that could arise if the merged company restricts the internet
    delivery of NBC Universal-owned programs that are offered off-
    line to the public for free today, to web portals that are
    available only to the Comcast broadband subscribers. We sought
    and we obtained commitments and assurances from the companies
    that access to those programs would not be so restricted.
        Today, we will focus on other potential effects of the
    merger, including how it will affect the company's practices
    with respect to diversity and employment, procurement, media
    programming and philanthropy.
        I look forward to the testimony of our witnesses on these
    and other matters. And I want to thank each of our witnesses
    for taking time to join us here this morning. A number of them
    have traveled to Chicago for purposes of sharing their views
    with us, and I very much appreciate your doing so, and being
    here today.
        I'm going to recognize both members of the panel for their
    opening statements, and then we will turn to the testimony of
    our witnesses. And I'll begin by recognizing the Republican
    member of our Subcommittee on Communications, Technology, and
    the Internet, the gentleman from Indiana, Mr. Buyer.
        [The prepared statement of Chairman Boucher follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

      OPENING STATEMENT OF HON. STEVE BUYER, A REPRESENTATIVE IN
                   CONGRESS FROM THE STATE OF INDIANA

        Mr. Buyer. Thank you very much, Mr. Boucher.
        Welcome to Chicago, welcome to the Midwest. And, Bobby
    Rush, thank you for having us come here.
        I brought some Indiana folks with me last night, and I
    thought I would take in a White Sox game, and it rained. By my
    calculation, that was probably about an $80 beer, so we sipped
    it slowly and enjoyed it. And probably the best judgment of the
    night was during the clearing, we made a run for the taxi.
        Mr. Rush. Mr. Chairman, if I may add, we do have rain
    checks in Chicago.
        Mr. Buyer. Oh, OK. All right. Rain check.
        I would also like to welcome Maxine Waters for giving up
    her time in sunny California to come to the Midwest. Thank you,
    also, for being here.
        When this joint venture between Comcast and NBC Universal
    was first proposed, I was most interested in the reaction, or,
    I should say, the lack of reaction not only by policy makers,
    but also stakeholders and others within industry.
         My initial reaction, personally, was about the--in our
    culture we have something that we don't think about very often,
    but its silence can be interpreted as acquiescence or an
    admission. And it's part of our culture. So, when this merger
    first came out, there was silence. And I was--my curiosity was
    I did not believe that the silence would be interpreted as an
    acquiescence to the merger. And my commitment has been to keep
    an open mind regarding this merger, and to allow the parties to
    be able to come together and address concerns. And I thank my
    friend, Mr. Boucher, for doing this. I brought this to him. He
    also is feeling the same way I was, and he said yes, we're
    going to have some hearings on this, and we want to go into it,
    we want to dive into this.
        Now, the Chairman in his comments about concerns with
    regard to consumers, and he's correct. And the Department of
    Justice will do their review on--because of anti-trust and the
    impact on competition, but we also need an over horizon view.
        The over horizon view, when you do the long view and you
    look at the data points that are out there, you have to be
    really careful about trying to define an image based on what we
    know today. The reason I say you have to be very careful,
    because as policy makers, we've done this before. And we've
    tried to define what we thought it looked like at the moment of
    calling, and got it wrong. And we're in such a highly dynamic
    industry that we have to be really very, very careful.
        I decided to do my due diligence, just as, Mr. Chairman,
    you are doing yours, so since February, I've met with every
    industry representative out there from broadcasters, pay TV
    affiliates, non-affiliates, content providers, carriers. I've
    done big cable, small cable, satellite. I've met with all the
    stakeholders that I possibly could. But my take-away from all
    of these meetings is that, it came out of the hearing we had
    done in February, that there was a real need to define
    Comcast's commitment to the network affiliated model of free
    over-the-air broadcasting, especially as it pertains to
    localism.
        Also, protect the value of the network and preventing a
    cycling of key programming, and migration of this key
    programming. The other is prevent bypass of the affiliates for
    first call rights to competing platforms as it pertains to
    Comcast providing network programming. And, fourth, protect the
    integrity of the retrans consent process.
        And, primarily, my concern there lies with the small cable
    companies insuring that they not get lost by big cable in the
    retrans consent process leading to less competition and higher
    prices for consumers.
        I want to--also, as this began to unfold, I also watched
    how the non-affiliates began to work out their concerns. Rather
    than immediately rush to the FCC, they came together, the non-
    affiliates did, and then took their concerns to Comcast, and
    they were able to come together in the private marketplace
    agreement.
        And then not only was that done, but then Comcast-NBC
    Universal had come together with their own agreements on many
    diversity issues. So, it's pretty good. They recognize that
    there's federal oversight, not only by the FCC, by your
    Committee, Mr. Chairman, but also by DOJ, so there are a lot of
    eyes being placed on this. So, the private sector are
    proceeding, and my reading of both of these agreements that
    have been done in the private sector, actually, they go beyond
    what I was even thinking about and considering. So, I want to
    congratulate the parties for leaning forward and doing what I
    think is right. So, with that, I yield back.
        Mr. Boucher. Thank you very much, Mr. Buyer. Thank you for
    taking the time to take part during this hearing this morning.
        I, again, want to thank Congressman Rush and his staff for
    their excellent assistance in arranging for today's hearing,
    and making sure that we could use the ceremonial courtroom here
    at the United States Courthouse. And Congressman Rush, I want
    to recognize you for your opening statement.

     OPENING STATEMENT OF HON. BOBBY L. RUSH, A REPRESENTATIVE IN
                  CONGRESS FROM THE STATE OF ILLINOIS

        Mr. Rush. Thank you, Mr. Chairman. And let me begin by
    thanking you so much for the outstanding cooperation and
    leadership which you have provided to the Subcommittee. And you
    have really gone beyond what would be normally expected in
    regards to this hearing. You're in the middle of a tough
    campaign, and that you would take the time off to leave your
    district and come to Chicago to convene this hearing. I'm
    certainly grateful to be part of this. And it's a pretty
    significant moment in the life of the city of Chicago, here on
    the eve of the LeBron era. And I will note that I am an eternal
    optimist.
        (Laughter.)
        But, Mr. Chairman, I want to welcome you again, welcome
    your colleagues and welcome Congresswoman Waters, and my
    colleague on the Subcommittee, Mr. Buyer from Indiana. I want
    to welcome each of you to this hearing, and to the city that I
    love so much.
        Mr. Chairman, on that day that Comcast and NBC Universal
    secure their last approval from federal and state regulators to
    combine their highly attractive, and lucrative, distribution
    and video programming assets, a very powerful and influential
    media and information colossus will be born. When that will
    happen, immediate power to determine what our nation watches,
    what we read, from where we get our news, and even on which
    electronic and communications devices those images and data
    will appear.
        The $28 billion joint venture between Comcast and NBC
    Universal will give Comcast, already the country's largest
    cable and home broadband company, total say and control over
    the day-to-day operations of the NBC networks; the Telemundo
    network, NBC's two dozen national cable network channels,
    including MSNBC, Bravo, CNBC, and partial interests in the
    Weather Channel, A&E's History and Biography channels, NBC
    Network News, ``The Today Show,'' ``NBC Sunday Night
    Football,'' ``Meet the Press,'' and distribution rights to a
    library of more than 55,000 TV episodes, not to mention the
    Universal Pictures movie studio and distribution companies.
         Many of the purported benefits of this proposed
    combination have been framed in terms of when and where
    subscribers will realize benefits. Some of the more widely
    touted subscriber benefits put forward by the parties are that
    Comcast cable TV subscribers will be able to see movies more
    quickly after the first showing in theaters, or that because of
    this transaction TV shows will appear faster on subscribers'
    cell phones, video-on-demand web sites, and other digital media
    platforms and devices.
        These ``whens'' and ``wheres'' are very important,
    absolutely very important. And I am concerned about these when
    and wheres, but I'm also equally concerned, however, about what
    cable television, broadcast TV, news, public affairs, religious
    and community programs, sporting events and movie content will
    not be made available to subscribers of Comcast's competitors,
    or to the competitors of Comcast's new affiliates.
        And will the same content that is offered to Comcast
    broadband subscribers be made available to all broadband users,
    regardless of whom they subscribe to for broadband service?
        Despite the critical importance of program access and the
    equitable carriage of network affiliates on Comcast's cable
    systems, the most important issue of access, as far as I am
    concerned, the most important issue is minority ownership.
        As the largest media and information merger since AOL and
    Time Warner which, incidentally, disrupts community practices
    in cable and broadcast TV programming in so many markets, the
    significance of this transaction cannot be underestimated.
        This represents a real opportunity that minority businesses
    and investors must not miss. They must be fully engaged. And I
    am cognizant of the commitment that Comcast made publically
    last month for increasing diversity of ownership, and diversity
    in programming. Specifically, Comcast plans on adding these
    channels over the next three years. As you see, that half of
    these channels are minority owned or run represents an
    important and positive step for increased minority ownership. I
    am delighted with the developments.
        However, Mr. Chairman, I think that minorities can and
    will, and must have better seats at the boardroom table, and
    not just in the movie theaters and watching television in their
    living rooms.
        Mr. Chairman, this is an opportunity for us. And I would
    say during the course of the last few months, I am pleased and
    interested and somewhat delighted by the approach that Comcast
    and NBC have made towards satisfying our concerns. I'm still
    not satisfied. I'm still not there yet, but I want you to know
    that without any changes, we're just going to end up at the
    same place. And, Mr. Chairman, with that, I yield back the
    balance of my time.
        [The prepared statement of Mr. Rush follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. Boucher. Thank you very much, Congressman Rush. And
    we're pleased to have joining us today a gentle lady from
    California, Ms. Waters. She is a senior member of the House
    Judiciary Committee, and while she does not serve on the Energy
    and Commerce Committee, we're very glad to have her here. She
    has strong interest in the subject matter we're examining this
    morning. And, in fact, was a leading participant in a hearing
    the House Judiciary Committee had on this subject in Los
    Angeles earlier this year.
        Ms. Waters, we're glad to have you here, and I'm pleased to
    recognize you for your statement.

     STATEMENT OF HON. MAXINE WATERS, A REPRESENTATIVE IN CONGRESS
                      FROM THE STATE OF CALIFORNIA

        Ms. Waters. Thank you very much, Mr. Chairman. I appreciate
    the opportunity that you've afforded me to come here today to
    be a part of this hearing. I'm especially appreciative to
    Congressman Rush for his assistance in making sure that I could
    participate as a panelist here today. And I'd like to thank all
    of my colleagues who are here today to participate in what I
    think is one of the most important hearings relative to media
    consolidation that we will have on this issue.
        Mr. Chairman, thank you for organizing this Field Hearing,
    and, again, allowing me the opportunity to participate. You're
    right, I have been involved with this issue for quite some time
    now, and my interest was basically triggered on June 7th, 2010
    when the House Committee on the Judiciary held a Field Hearing.
    Well, it was prior to that time, but I've been in two hearings
    to date on this issue, and I do have some concern. What I'd
    like to do is just take a moment and try and explain what those
    concerns are, and why I have those concerns.
        Over the past couple of months, I've been active in
    advocating for a process in the Federal Communications
    Commission's review of this merger, the opportunities for
    minorities in media have been severely limited as a result of
    deregulatory policies, and large media consolidations. This has
    concentrated our media industry into the control of a mere
    handful of corporations, constraining opportunities for
    minority ownership of media licenses.
        While I'm not presently, and have not indicated direct
    opposition to the Comcast-NBC merger, I do recognize it as a
    critical opportunity for both companies to implement a plan of
    action to address their shortcomings with respect to minority
    inclusion within their programming, management, ownership, and
    advertising activities.
        Ultimately, these diversity considerations are taken into
    account within the FCC's review proceedings. While both the FCC
    and DOJ have the statutory authority to review new mergers
    under our Federal Anti-Trust Laws, the FCC's process allows for
    a more comprehensive public interest analysis, including a
    deeply rooted preference for preserving, and enhancing
    competition, and generally managing the spectrum in the public
    interest, in the public trust.
        Therefore, my concerns about this merger are based on the
    potential impact on diversity, competition, and whether
    consumers will enjoy diverse and alternative sources of news
    and entertainment. From what we have gathered about the
    companies' organizational structures, both Comcast and NBC have
    a lot of work to do.
        NBC Universal has 18 corporate executives, while two of the
    18 are minorities, including Ms. Paula Madison, who's here
    today. Their primary responsibilities do not include managing
    networks, and producing content. Despite Ms. Madison's efforts
    to work with the key executives to promote diversity throughout
    NBC Universal, the company continues to fall short in setting
    tangible benchmarks, and achieving results in increasing
    minority representation among its high-level management and
    executive positions.
        NBCU does not have any African American show runners over
    its prime time, daytime, or late night programming. This means
    African Americans are not in positions where they oversee
    budgets, and the hiring of actors, writers, co-producers, and
    technical employees. It is important to have diversity in these
    management positions, because they create employment
    opportunities for other producers, writers, directors, and
    actors.
        Similarly, NBC's Universal Studios do not employee African
    Americans with the authority to decide which film projects are
    ultimately given the necessary support to make it to the big
    screen, that is green light.
        The President and COO of NBC Universal Studios is a white
    male. The President and Chairman of Universal Pictures and
    Focus Features also white. Of the 21 films NBC Universal
    Pictures released in 2009, only two simply had minority leads.
    The overwhelming majority of NBC TV content is produced by
    white individuals, or white- owned production companies. The
    Presidents of all 12 of the NBC cable networks are white.
    Ultimately, these individuals are influential in deciding what
    show runners are hired to produce the television shows that
    will air on these networks.
        Thus, it is important to have sufficient minority
    representation and programming to ensure diversity in content
    the network produces.
        Comcast Corporation also has problems with diversity and
    inclusion. Only one of Comcast's 13 member Board of Directors
    is an African American. Only two of Comcast's 28 corporate
    executives are African American. Comcast has 33 division
    executives, while three of these executives are minorities,
    there are no African American division executives listed on
    Comcast's Web site who head Comcast's programming group.
        When broken down further by each of Comcast's individual
    cable networks, only one has an African American President, and
    that is the Style network. There is one Latino executive;
    however, he is responsible for advertising and sales, not
    programming.
        The barriers to ownership for minorities and women have
    been studied by various universities and non-profit
    organizations. Currently, TV One is the only United States
    cable network with significant black ownership. That is Video
    One, Alfred Liggins, President and CEO, owns 37 percent of TV
    One. While Comcast carries the network on its mostly widely
    distributed tier, it is worth noting that Comcast owns 33
    states in TV One. In 2007, minorities owned just 3.2 percent of
    the United States television stations, despite comprising more
    than 34 percent of the population.
        In fact, of NBC's more than 200 affiliated television
    stations, only one is black- owned. Ironically, while the
    National Urban League and its chapters, among the first of our
    nation's Civil Rights groups to support the merger, it, too,
    released a study in 2005 detailing the broadcast networks'
    failure to have diverse guests on their Sunday morning news
    shows. The studies included that 60 percent of the Sunday
    morning talk shows feature no black guest at all, and that 78
    percent of the broadcasts contain no interviews with a black
    guest.
        Therefore, when we discuss NBCU or Comcast's lack of
    diversity, it is not merely isolated, or defined as the absence
    of minorities in front of the camera. Credible involvement of
    minorities start at the top, and trickles down through every
    job or position that is necessary to produce and distribute a
    television program, or motion picture.
        Therefore, it is imperative that NBC Universal and Comcast
    show its commitment to diversity, and negotiate, work with
    those groups to come up with a substantive plan that
    incorporates minorities in all aspects of its media programming
    and distribution activities. This begins with a strategy to
    extend opportunities for minorities in media ownership,
    management, programming, and advertising.
        Thank you, Mr. Chairman. And I yield back the balance of my
    time.
        [The prepared statement of Ms. Waters follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. Boucher. Thank you very much, Ms. Waters. Appreciate
    your statement this morning.
        We now will recognize our panel of witnesses, and they are
    here by invitation. The witnesses are here by invitation only.
        Mr. Feldman. Mr. Chairman, I had submitted to your office a
    request to speak here.
        Mr. Boucher. Sir, you're out of order. We are recognizing
    our witnesses at the hearing at this time.
        Mr. Feldman. I ask you, please, to reconsider. I have
    testimony that I----
        Mr. Boucher. Sir, I'm sorry. The witnesses are here by
    invitation only. And we will now recognize our panel of
    witnesses.
        Mr. Jonathan Jackson is the national spokesperson for the
    Rainbow PUSH Coalition, and is speaking today on behalf of that
    coalition. Mr. Will Griffin is President and Chief Executive
    Officer of Hip Hop OnDemand. Mr. Samuel DeSimone is the General
    Counsel for EarthLink. Ms. Paula Madison is Executive Vice
    President and Chief Diversity Officer of NBC Universal. And
    Joseph Waz is Senior Vice President for Comcast Corporation.
        We welcome each of you, and without objection, your
    prepared written statements will be made a part of the record.
    We would welcome your oral summaries. And in the interest of
    time, because we only have this room until 11:00 today, we
    would ask that you try to keep those oral summaries to
    approximately five minutes. That will leave for us ample time
    to take questions.
        Mr. Jackson, we will be happy to begin with you.

      STATEMENT OF JONATHAN JACKSON, RAINBOW PUSH COALITION; WILL
        GRIFFIN, PRESIDENT AND CHIEF EXECUTIVE OFFICER, HIP HOP
    ONDEMAND; SAMUEL R. DESIMONE, GENERAL COUNSEL, EARTHLINK; PAULA
    MADISON, EXECUTIVE VICE PRESIDENT, CHIEF DIVERSITY OFFICER, NBC
    UNIVERSAL; JOSEPH W. WAZ, JR., SENIOR VICE PRESIDENT, EXTERNAL
         AFFAIRS AND PUBLIC POLICY COUNSEL, COMCAST CORPORATION

                     STATEMENT OF JONATHAN JACKSON

        Mr. Jackson. Thank you, Chairman. My name is Jonathan
    Jackson. I'm the spokesperson for the Rainbow PUSH Coalition
    here in my father's behalf, Reverend Jesse Jackson.
        First I'd like to say good morning, Mr. Rush, Ms. Waters
    and other members of the panel. I welcome this opportunity to
    speak to you today concerning the proposed merger between
    Comcast and NBC Universal.
        In the context of economic emancipation, I ask what is
    Comcast's return on investment in assisting the economic
    empowerment of African American communities, and the
    underserved communities?
        In other words, why is it good business for Comcast to
    address two of the nation's most important challenges; one,
    creating jobs, and, two, helping to connect every American,
    especially people that are marginalized in our country today,
    to vitally needed news, information, and broadband internet
    services?
        With this proposed merger comes a rare, and perhaps the
    last opportunity to address critical issues in the global
    communications landscape. Therefore, we take the following
    positions as this merger is considered.
        An opportunity exists to create a new global media platform
    now. The opportunity exists to create a new minority-owned
    venture that can be empowered to create sustainable
    opportunities now. Diversity should be a top down priority in
    every aspect of the merger. The merger should not hinder new
    media, but help support it by creating new, more easily
    accessible technological platforms.
        On to the point of ownership. There are three minority
    owners in the Chicago market, controlling a total of three
    stations, or less than 5 percent of all of the commercial radio
    stations in Chicago; WJOB-AM 1230, is controlled out of Hammon,
    Indiana-based Vasquez Development, a Latino-female-owned
    company; WLTH-AM 1370, controlled by WLTH Radio, an African-
    American-owned company; and WVON-AM 1690, controlled by
    Chicago-based African American-owned Midway Broadcasting
    Company.
        In a city that's over 40 percent African American, there's
    a dearth of media ownership happening in Chicago today. What
    was old media--what is new media is looking more like more of
    the old media. I encourage you to let's create the opportunity
    now, that the ship has now left the station, so to speak. And
    what we're experiencing now is less diversity than ever before.
        I can recall growing up when we saw an African American
    leading the news on CNN, we saw them at the White House years
    ago, and today it's none. In the City of Chicago, we have two,
    five, seven, nine, CLTV, what local networks that say you're
    proud to service the African American community.
        We know the power of images on television. Until those
    persons that have the power assume the responsibility to
    project positive images, how can a community develop and
    sustain itself?
        Some people need to be held accountable today. If we look
    at the music industry, we look at the film industry, I see that
    there's too much blame fixing on the children, and on the
    parents. Those corporate titans that have the power to shape
    the images, to shape the culture are not being held responsible
    for the music that's being produced, and the music that is
    being distributed. Some people would say they're only
    fulfilling the current need, that if people didn't like it,
    they wouldn't buy it. Well, if people don't have a choice, they
    succumb to whatever is left before them.
        That is what I would encourage you to do. Let's create
    opportunities today. We're going through, if you will, the
    third evolution, now into the fourth evolution of wireless
    technology. This Committee has missed it all. We have food
    banks for over 600,000 people do not have adequate supply of
    food in the City of Chicago. That's a major issue. We have
    broadband deserts where people cannot register online cannot
    take classes online, cannot look up information online. In the
    heart of Englewood, where we've seen something very tragic
    happen just yesterday of another officer being killed in as few
    as two months. So, gentlemen and ladies of the Committee, I ask
    you to have that in your consideration. I yield the rest of my
    time.
        [The prepared statement of Jonathan Jackson follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. Boucher. Thank you very much, Mr. Jackson.
        Mr. Griffin, we'll be happy to hear from you.

                       STATEMENT OF WILL GRIFFIN

        Mr. Griffin. Thank you, Mr. Chairman and members of the
    Committee, Congresswoman Waters, nice to see you again.
    Congressman Rush. Thank you for the opportunity to appear
    before you today to discuss the proposed combination of Comcast
    and NBC Universal, and who benefits from it.
        By way of background, I have seen the inner workings of
    most of the major media companies. While in law school, my
    faculty advisor was current Deputy Commerce Secretary, Dennis
    Hightower, who was the first African American President of Walt
    Disney Television. As the Director of the Harvard Consultation
    Project, I was advised by former Motown Chairman, Clarence
    Avant, who opened the door of access into the CEOs of the major
    record labels which started my career in the media industry.
        Subsequently, at McKinsey & Company's entertainment and
    media group, I worked on project at Time Warner during its
    post-merger integration with Turner, and I remember a
    discussion with AOL and Time Warner the same discussion, which
    was lack of broadband access, lack of diversity, and it was
    going to be the end of life as we knew it for all media
    companies, and it didn't work out for AOL for all practical
    purposes. I think all those intentions didn't come to pass.
        But, subsequently, I joined News Corporate in the Strategy
    and Marketing Group, and for the past 10 years I've been an
    entrepreneur in African American media producing film with
    Reuben Cannon and Bishop TD Jakes, and ultimately running a
    film and television production company in partnership with
    Russell Simmons and Stan Lathan, where we created and launch
    Hip Hop OnDemand on Comcast five years ago.
        These experiences have led me to support this joint venture
    with Comcast as the controlling partner for two overwhelming
    reasons. First, Comcast has the best Infrastructure of
    Inclusion to build upon in the media industry. And, two,
    African American consumers and policy makers have more
    potential leverage over Comcast than any other media company. I
    do not come to this conclusion lightly, because there is no
    doubt that the history of African Americans and media
    consolidation creates a visceral negative reaction to any
    merger or consolidation.
        When I watch Congresswoman Waters' hearings or Congressman
    Rush president over the legislation for Wall Street reform to
    insure the Side Streets and main street are protected from the
    excesses of Wall Street, I applaud. Likewise, I applauded the
    field hearing in June in Los Angeles, and I believe this
    hearing is vitally important, because I remember sitting in my
    dorm room in 1992 when Bill Cosby expressed his desire to buy
    the NBC network, a network that he turned around with African
    American programming, and was told it was not for sale. It
    begged the existential question, ``Why?''
        Many African Americans remember when Fox launched with a
    focus on African American programming. They had iconic shows
    like Queen Latifah in ``Living Single,'' ``Martin,'' ``Roc'',
    ``New York Undercover.'' Then through a series of acquisitions,
    mergers, stock swaps and expansions into Fox News, the company
    has morphed into the monstrosity that we see today. From Queen
    Latifah to Glenn Beck. Why?
        More recently, when Viacom's UPN and Time Warner's the WB
    merged, the first casualties were the African American shows,
    ``Girlfriends,'' ``Eve,'' ``All of Us,'' ``Everybody Hates
    Chris,'' that made up the bulk of UPN's line-up. Why?
        Here's my answer; because advertisers have only been
    willing to pay for a limited amount of African American
    impressions, and will not pay for every African American view
    generated. It is why African American icons like Chicago's
    legendary Johnson Publishing with Ebony/Jet are in decline, and
    it should be the subject of future hearings. We are just a few
    blocks from many of the companies that control the main source
    of revenue in the media industry, and I think that they should
    be held accountable. That's necessary if we are to remove the
    primary barrier to growth and sustainability in minority media
    companies. Your intervention and oversight of the advertising
    industry is sorely needed.
        This is true of my own experience with Hip Hop OnDemand. At
    about the same time that we launched on Comcast, three other
    African American channels also entered into long-term
    distribution agreements with Comcast, Video OnDemand, Quincy
    Jones III's channel, and TV One. Two of the other companies
    quickly folded because they couldn't secure advertisers.
    Fortunately, we had General Motors, the Coca Cola Company, and
    Reebok as charter sponsors. Then foreign-owned Adidas acquired
    Reebok and zeroed out their African American marketing budget.
    Then GM experienced their problems, came to Congress to bail
    them out, and re-emerged to profitability, and they have not
    come back to our channel, despite the fact that we have
    experienced viewership growth in each and every quarter. If my
    company was paid for every one of the 500 million potential ad
    impressions generated, I could have made my own run at NBC.
        The root of the problem is this, advertisers' unwillingness
    to allocate minority marketing budgets in proportion to
    viewership ratings, which brings me to why I supposed this
    transaction.
        Comcast has the best Infrastructure of Inclusion to build
    upon in the media industry. Some of the very systems at the
    core of the Comcast media empire were birthed by African
    American media owners. The Washington D.C. cable system was
    founded by Bob Johnson, and funded by Herb Wilkins and Syncom.
    Syncom in Chicago, along with John Johnson and George Johnson,
    founded the forerunner of Comcast's current Chicago Cable
    System. When the question is posed, ``who benefits,'' I think
    this history is important to note. This effort is all the more
    significant that a city founded by African Americans was the
    first to put broadband access within the reach for so many
    African Americans. Chicago was the first of the Comcast markets
    to go all digital. Analog boxes were able to be traded in for
    digital boxes at no additional cost to the consumer. This is
    particularly relevant to African Americans, because broadband
    access was considered an additional expense. When the digital
    boxes came in, it became easy to buy broadband access as part
    of a bundle, which I believe has contributed to helping
    increase broadband access in Chicago.
        Chicago is very unique in the United States in that respect
    in terms of the digital divide and the ability to use cable to
    get broadband access into African American homes. As more cable
    boxes are rolled out in other markets it will help bridge the
    digital divide.
        So, I think this history of Comcast corporate structure
    with African Americans is important, because I liken this
    corporate family tree to the Thomas Jefferson/Sally Hemming
    descendents, it's in your DNA, you might as well embrace it.
        I believe they have. I listened with great interest at the
    Field Hearing on June 7th, and I also listened with great
    interest to Congressman Rush's Opening Statement in a March
    hearing with FCC Chairman on the National Broadband plan and
    its omission of potential benefits to Small and Minority-owned
    businesses.
        In 2007, when Comcast allowed all of its Chicago analog
    subscribers to trade in their boxes, I believe they started
    going in the direction of what you were asking them in terms of
    the National Broadband plan. True, it's only a start, and more
    can be done, but I think this will be a big help in that
    direction.
        In minorities, there are substantial minorities in
    management positions among its tens of thousands of minority
    employees in Comcast. Moreover, in each of the last five years,
    that number has continued to grow at a rate greater than that
    of whites in the corporate structure. The minority composition
    is vastly superior to any other media company, and is eons
    ahead of the advertising, telecommunications, and financial
    services industries. That context is extremely important when
    we evaluate Congresswoman Waters' numbers, because what she's
    saying is true. But I think if you begin to look in terms of
    the direction of where Comcast is going, it's headed in the
    right direction.
        I'd also like to highlight some examples of how having
    thousands of minorities in leadership positions at Comcast has
    been invaluable to me as an African American media owner.
        When we launched along with three other channels, it was
    because Comcast Corporate Vice President, Payne Brown, came to
    dozens of African Americans in the creative community to
    educate us on the video on demand platform, and the multi-
    billion dollar investment that Comcast was making to become the
    industry leader in VOD. When we saw the ability to get
    distribution and programming directly to our core viewers, we
    were one of the few who actually raised the capital, and
    secured the advertisers to pursue the opportunity. Once we were
    on the platform, we began to market our channel and get support
    from the African American General Managers, who run the cable
    systems here in Chicago, Washington, D.C., Houston, South
    Florida, and the entire Western Region of the United States,
    are run by African American General Managers at Comcast. It is
    no coincidence in the markets with the larger African American
    populations, and African American GMs are our top performing
    markets. As part of our ongoing process of making viewers aware
    of our channel, we have supplied information to Comcast's
    customer service teams, who are largely African American, and
    supervised by an African American female Senior Vice President,
    it helps when explaining our channel to subscribers.
        The result is that according to a study conducted by
    Starcom Media Group, African Americans are more than twice as
    likely to use VOD than any other demographic.
        Mr. Boucher. Mr. Griffin, you have exceeded your allotted
    time. Now, if you could just wrap up, we would appreciate that.
        Mr. Griffin. Sure.
        Mr. Boucher. We will come back to you for questions.
        Mr. Griffin. Sure. Well, I was reading the pages, but I
    believe the proposed Comcast-NBCU joint venture is a step in
    the right direction. Thank you.
        [The prepared statement of Mr. Griffin follows:]

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        Mr. Boucher. Thank you very much, Mr. Griffin.
        Mr. DeSimone.

                      STATEMENT OF SAMUEL DESIMONE

        Mr. DeSimone. Good morning, Chairman Boucher, Chairman
    Rush, Representative Waters. Thank you for inviting me to
    testify today on behalf of EarthLink.
        EarthLink is one of the national's largest, oldest
    independent internet service provider. And by independent,
    we're not affiliated with facilities-based provider of
    telephone, cable, or satellite services. We serve nearly 2
    million customers nationwide with dial-up, broadband, and other
    internet services, and frequently receive awards for our
    customer service innovation.
        I appear today to urge that the approval of the proposed
    merger between Comcast and NBC be conditioned on Comcast's
    entering into contractual arrangements with independent ISPs,
    like EarthLink, for wholesale, non-discriminatory broadband
    access, services at reasonable rates and terms.
        Since EarthLink's founding in the dial-up in the mid-1990,
    our mission has always been to provide consumers a fast,
    unfiltered direct connection to the content of the entire World
    Wide Web. EarthLink is one of the only ISPs out of thousands
    that offered dial-up access business that has been competing in
    the broadband market during the last decade.
        As we look at the emerging broadband services and the
    proposed merger, we believe independent ISPs can and should
    play an important role in the broadband marketplace. The
    proposed merger would significantly change the US media and
    internet landscape. A dramatic increase in the scope and scale
    of Comcast's control over the programming and content, combined
    with its dominant gateway control of the broadband network
    raises the risk that this will result in less competition, less
    consumer choice, decreased information diversity, reduced
    broadband investment and higher cost for consumers.
        The merger will create even broader economic incentives for
    Comcast to deny wholesale broadband access to competing ISPs.
    These enhanced incentives will flow from Comcast's need to
    protect the incumbent cable and anything you have to protect
    the growth of online video. It is reasonable to expect the push
    for Comcast to address these online stresses and formulate a
    business strategy, such as, one, tying consumer access to
    online content to a cable TV subscription so that the two can
    either break the bundle or cut the cord. Two, engage in
    broadband network practices that discriminate against competing
    online video distributors. Three, withhold information
    involving rivals from Comcast and NBC affiliated programming
    and content. Four, enforcing conceptual description of the
    current cable carriage agreements that prevent video
    programmers from offering further linkages to other online
    competitors. Five, increasing the slice of broadband access
    especially in areas where it's the only high-speed provider to
    discourage its use for online video.
        Whether distinctly or in combination, these strategies
    would harm consumers by forcing them to purchase bundles of
    services they do not need or want, and at higher prices for
    Wholesale Broadband Access Service. U.S. consumers would have
    more choices of broadband providers to access this new
    generation of internet services.
        In these difficult economic times, this choice would give
    consumers the option to break the bundle and purchase only the
    services they need. Independent ISPs will have strong
    incentives to bring consumers independent video without
    bundling of services that dominates the market today. In such
    an environment, a diverse array of independent video
    programmers will also benefit because independent broadband ISP
    will have no incentive to restrict access to their programming.
    The resulting competition for content diversity will help keep
    cable prices in check.
        These arrangements should be modeled on our successful
    arrangement with Time Warner Cable. Our original agreement with
    Time Warner arose from conditions imposed by the FCC on the
    AOL-Time Warner merger in 2000, under which Time Warner grants
    us the right to provide our award-winning service to consumers
    over their cable network, and in exchange we pay a mutually
    agreed upon fee to Time Warner. This agreement was renewed in
    2006, and continues to be mutually beneficial today. We have
    found that bringing consumers a valuable, competitive
    alternative helps drive broadband adoption and usage.
        EarthLink's recommended solution is simple, narrow, low-
    cost, easy to implement, and has already proven to be effective
    in the marketplace. EarthLink believes competition would help
    U.S. consumers fully realize the power of diversity, and the
    possibilities of the internet. Thank you, and I look forward to
    your questions.
        [The prepared statement of Mr. DeSimone follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. Boucher. Thank you very much, Mr. DeSimone.
        Ms. Madison, we'll be happy to hear from you.

                       STATEMENT OF PAULA MADISON

        Ms. Madison. Thank you. Chairman Boucher, Representatives
    Rush, Buyer, and Waters, it's a pleasure to be here today in
    Chicago to discuss the Comcast-NBC joint venture.
        As the home of two iconic African American-owned media
    businesses, a professional and personal friend and hero of
    mine, the late, great Vernon Jarrett, the Dean of Black
    Journalism, the windy city is a fitting backdrop for today's
    hearing.
        My written statement discusses in great detail the
    consumer- and innovation-related benefits of the deal, so I'd
    like to use my opening statement to highlight another important
    issue, the positive impact that this transaction will have on
    diversity.
        Although I currently serve as the Chief Diversity Officer
    for NBCU, and report directly to our President and CEO, Jeff
    Zucker, my career with the company began more than two decades
    ago in the newsroom as an Assistant News Director at WNBC, our
    flagship station in New York City.
        As I rose through the ranks of NBCU to become the first
    African American female President and General Manager of KNBC
    in Los Angeles, I experienced first-hand the company's
    commitment to diversity. During those years, I also made it a
    personal and professional priority to recruit, cultivate, and
    promote talented executives of color, so when Jeff Zucker
    approached me in 2007 about leaving the helm of KNBC to assume
    the role of Chief Diversity Officer, it was an opportunity that
    naturally complemented my career in the company.
        I decided to take on the new challenge, not because I
    needed to, but because I believe in NBC Universal, and remain
    deeply committed to helping people of color, both new hires,
    and existing executives succeed in the media and entertainment
    industry.
        One powerful example of the diversity issue within our
    company is my dear friend, Celia Chavez, the dynamic President
    and General Manager of WSNS Telemundo here in Chicago, who's
    here with us today. A 22-year veteran of the television
    business, Celia joined Telemundo in 1995, and has served in
    senior leadership roles in several major markets across the
    country, including Los Angeles, San Antonio, Los Vegas and
    Denver.
        Since joining WSNS here in Chicago, Celia has launched
    several new programs, including Hablando Claro, Speaking
    Clearly, a public affairs show focused on helping Chicagoans
    improve their daily lives. This city, NBC Universal, and
    Telemundo are all lucky to have Celia on their team.
        On the issue of diversity, enormous progress has been made
    in the five months since Mr. Zucker and Mr. Roberts testified
    at length before this Committee. Through a longstanding ongoing
    open dialogue, we've made real progress in addressing important
    issues raised by organizations representing communities of
    color, as well as some concerns members of Congress, as you
    heard here today.
        In early June, as an outgrowth of these talks and our own
    internal discussions, Comcast-NBCU announced a comprehensive
    series of formal joint diversity commitments covering a wide
    range of areas, workforce recruitment and career development,
    supplier diversity, media ownership, programming, and community
    investments and partnerships.
        In recent weeks, these important careers have been
    supplemented by an agreement among Comcast-NBCU, and several
    prominent organizations, including the National Council for La
    Raza, the Hispanic Association on Corporate Responsibility and
    the National Hispanic Media Coalition.
        I'd like to take a minute to draw your attention to some
    key details of the joint diversity commitments, which are
    attached in full to Joe Waz's testimony. Although I hope you'll
    have an even closer look at these documents, which I have here
    with me in order to better understand the depth and breadth of
    the commitments, let me point out some of the highlights of
    this document.
        At their core, these commitments not only build upon the
    success of past efforts at NBCU, but break new ground. Whether
    it's the establishment of four new external diversity councils
    to advise senior management, or the commitment to increase
    diversity among executive ranks with the assistance of
    professional search firms with proven track records of success,
    or the continued expansion of the geographic footprint in
    original programming budgets at Telemundo, or the significant
    increases in minority procurement and community philanthropic
    investments. These deals include concrete and tangible benefits
    for those who, like me, care deeply about diversity.
        As a veteran of the broadcast news business, I also want to
    mention the positive impact the Comcast-NBC new joint venture
    will have on free over-the-air broadcast television and news.
    By permitting to invest going forward in Telemundo and NBC News
    owned and operated stations, Comcast is clearly demonstrating
    its willingness to support this important industry, which
    millions of families, a disproportionate percentage of whom are
    low-income and minority, continue to rely on for their news,
    weather, sports, and entertainment programming.
        This deal does not resolve all of the unanswered questions,
    or solve every problem industry faces, but one thing is clear.
    It is an important and significant step in the right direction.
    As Vernon Jarrett famously said in his last column before
    retiring, the struggle goes on. And just as I have for the past
    20 plus years, I remain committed to continuing an open
    dialogue with anyone and everyone who is willing to work
    collaboratively and productively with NBC Universal, and the
    industry as a whole, as we take positive strides forward in
    advancing the cause of diversity. I look forward to answering
    the Subcommittee's questions. Thank you.
        [The prepared statement of Ms. Madison follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. Boucher. Thank you very much, Ms. Madison.
        Mr. Waz.

                        STATEMENT OF JOSEPH WAZ

        Mr. Waz. Chairman Boucher, thank you, and thanks again for
    the opportunity to be here with you and your colleagues this
    morning.
        You presented the topic of this hearing in the form of a
    question: ``Comcast and NBCU Universal: Who Benefits?'' I
    appreciate the opportunity to answer that question.
        I believe that the benefits of this transaction will
    promulgate to the nation's economy, to all subscribers, multi-
    channel video services, whether for Comcast or our competitors
    to all who rely on over-the-air broadcasting, to independent
    programmers, to creators of color, and to many, many others.
    I'd like to use my time to summarize some of these benefits.
        By bringing together content and distribution in this
    transaction, we see significant opportunities to grow our
    businesses, and to preserve and grow jobs in this sluggish
    economy. As our Chairman and CEO, Brian Roberts, has said on a
    number of occasions, ``This transaction is a bet on America at
    a time when few such bets are being placed.''
        Consumers will benefit because this transaction will
    accelerate the anytime, anywhere digital video future the
    consumers want and demand. All consumers will benefit because
    as Comcast becomes more innovative, our competitors in
    satellite, phone company, and other video providers need to
    innovate, too.
        As Ms. Madison explained, this transaction will benefit
    households that rely primarily on over-the-air broadcast TV,
    which are disproportionately minorities, senior citizens, and
    low or fixed income. Although broadcasting is a challenged
    business, we have committed to invest in NBC and Telemundo to
    make them stronger and to make the services continue to meet
    the needs of over-the-air viewers, and all viewers.
        Independent content providers will also benefit. We can
    never possibly serve the needs of all viewers solely with the
    content that this company will own. This transaction will help
    open up new opportunities on our OnDemand and online platforms,
    as well as our traditional cable platform, that we'll be
    pleased to discuss. And we hope that this will make possible
    many more success stories like those of Will Griffin and other
    independent content creators and entrepreneurs.
        In addition, we committed to add 10 new independently owned
    and operated cable networks over the next eight years, and we
    will dedicate most of those new opportunities to channels that
    are already owned and controlled. Moreover, as NBCU divests one
    of its Los Angeles television stations, it has committed to do
    its best to insure that a minority owner will acquire this
    station. And in the event that any future divestitures of
    broadcast or cable assets, we will take special steps to seek
    minority purchasers.
        Diverse communities across America will benefit. We have
    set a series of diversity goals in procurement, employment,
    governance and philanthropy to build on our current records, to
    help implement and monitor these initiates. As Ms. Madison
    mentioned, we will establish a joint diversity council to work
    collaboratively with our combined companies. The joint council
    will comprise councils representing the African American,
    Hispanic, and Asian Pacific Islander communities, and a fourth
    council to include representatives of veterans, the LGBT
    community, and people with disabilities, among others.
        Labor unions and guilds who produce creative content will
    benefit. We have reached out to them to convey our commitment
    to honor existing collective bargaining agreements, and we are
    grateful for the favorable comments on our joint venture for
    the Teamsters and the Directors Guild of America. Also
    benefitting in the transactions and parents and care givers,
    minority entrepreneurs, and new technology, and many others.
    And I hope to be able to say more about this during question
    time.
        Many of the public interest benefits I described flow
    organically from this transaction. Others are the result of
    discussions we've had over the last six months with responsible
    organizations and leaders who have thoughtfully raised their
    concerns, and worked with us in good faith to address them. For
    example, as Mr. Buyer has noted, we had discussions with NBC
    network affiliates and non-NBC affiliates. They wanted to
    ensure that our commitments were sincere and we have reached a
    firm that they believe that. We've also met with diversity
    leaders, independent producers, and many others. We have
    reached a number of mutually satisfactory agreements with
    various stakeholders, and hope to announce more in the coming
    weeks.
        I think this shows how Comcast has always approached our
    business and our public interest responsibilities through a
    willingness to have open dialogue with reasonable people about
    legitimate concerns. And we always sought resolutions that are
    good for all sides.
        Mr. Chairman, I'd like to close by noting the massive
    record of support for transaction at the FCC. As of last
    Friday, over 860 organizations and leaders, including 84
    members of Congress, eight governors, over 115 state
    legislators, over 40 mayors, and countless Chambers of
    Commerce, civil rights, civic and community organizations have
    filed supportive comments. More than 100 of these filings came
    from Greater Chicago, and, Mr. Chairman, with your permission,
    I'd like to ask that they be made part of the record.
        Mr. Boucher. Without objection, that will be included in
    the record.
        Mr. Waz. Thank you, sir.
        Mr. Boucher. Does that conclude your testimony?
        Mr. Waz. One last comment, if I may.
        Mr. Chairman, I'm also pleased to share with you, with Mr.
    Rush's and your acquiescence a letter that our Executive Vice
    President and Chief Diversity Officer, David Cohen, has sent to
    Congressman Rush. The letter summarizes some further
    refinements of our diversity commitments that were brought up
    in our discussions with Congressman Rush. We also continue to
    discuss certain concerns that Congresswoman Waters has and were
    brought to our attention, as well.
        And we've very excited about this transaction. Thank you
    for the opportunity to share our views, and now I do look
    forward to your questions.
        [The prepared statement of Mr. Waz follows:]

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        Mr. Boucher. Mr. Waz, thank you very much. And thanks to
    each of our witnesses for sharing your views with us on the
    matter this morning.
        I have just a couple of questions. Mr. Waz, I know that
    Comcast, as part of its voluntary undertaking on diversity
    matters has committed to add at least two independently owned
    channels to its lineup in each of the next three years. And
    it's also committed that at least half of those channels will
    have substantial minority ownership interest. Is it your intent
    to put those independently owned channels on all the Comcast
    cable systems, or only on part of them?
        Mr. Waz. Mr. Chairman, first of all, let me begin by just
    updating the commitment as we continue to have discussions with
    our diversity organizations, and the agreement we have reached
    with the Hispanic Leadership organizations.
        We plan to enhance the commitment so that we're now
    prepared to add 10 independently owned and controlled channels
    over a period of eight years. We intend for four of those to be
    owned by the Latinos. And per the letter that we were sharing
    with Mr. Rush this morning, we have also committed to make a
    minimum of four of those channels, channels that are owned and
    controlled by African Americans. We intend to give them
    substantial carriage according to what I'll call customary
    terms and conditions in the industry. Each new network needs an
    opportunity to establish itself, and we've worked with--I'll
    give you an example of a network in which we had an ownership
    stake, and that is TV One.
        I think TV One stands out as, actually, exactly the sort of
    opportunity that Congresswoman Waters and others are pointing
    to, which is what can a company, a significant media company do
    to help promote media ownership, media distribution
    opportunities for African American programming? And I think as
    he was alluding in his testimony in Los Angeles, he stated how
    important and how sincere the Comcast commitment was to help
    them grow that effort.
        Even that network at conception did not appear on all
    Comcast systems. And even today, we continue to add it on
    Comcast systems. So, I would anticipate in each case with each
    of these networks that we talk with, we will reach terms and
    conditions for appropriate levels of introduction of these new
    networks in markets as appropriate across the country.
        Mr. Boucher. Well, I guess my question is, have you
    determined what markets are appropriate, and what assurance do
    we have that while the commitment you have independently come
    to, for example, minority ownership interest in a number of
    these channels, new channels added, that we are given to
    understand that there are actually going to be carried on a
    very large majority of your cable systems. Can we get that
    assurance?
        Mr. Waz. I can assure that we intend to work with each
    independently owned channel, just as we work with several other
    new independently owned channels, more than a dozen of whom I
    believe have put letters on the record with the FCC saying that
    it's independently owned and operated channels. They work very
    successfully with Comcast in order to do this.
        Mr. Boucher. OK. Let me ask you another question. As was
    indicated by Mr. Jackson in his testimony earlier, there is a
    notable lack on major networks of prime time programming with a
    minority presence. And we don't have anything on any of the big
    four networks today that remotely resembles the ``Cosby Show,''
    for example.
        I'm wondering if the diversity commitments that you have
    voluntarily made, which I view as extensive, would serve to
    increase diversity programming on prime time network
    programming, in your opinion?
        Mr. Waz. I'm hopeful that that will be among the many
    salutary results of--if I may, if I can defer to Ms. Madison,
    who will offer her opinion.
        Mr. Boucher. Ms. Madison, do you care to comment on that?
        Ms. Madison. Yes, Mr. Chairman.
        We entered into an agreement back in 2000 with four
    external watchdog groups, and we've been reporting up to them
    annually, and quarterly, actually, for the past three years. In
    that time period, we have continued to add diversity both up
    front and behind the counter. There's no question that the
    industry has a long way to go, and this is not a situation
    that's limited to just NBC Universal. But having said that, and
    specifically regarding the ``Cosby Show,'' we have at NBC
    Universal increased the numbers of on-camera actors who are
    diverse year over year, so much so that this season coming up
    beginning in September, we have our most high-profile new drama
    called ``Under Cover,'' which has two blacks as the leads in
    the show. There's a cast of four people, of that cast, two are
    leads, one is also African American, who is also in that cast,
    and there's one white male. We also have the President of the
    United States cast as an African American in a lead role in
    another program called ``The Event.'' And we also have a famous
    actor, Jimmy Smits cast as a former Supreme Court justice in
    another one of our major dramas that's called ``Outlaw.'' So,
    we are moving----
        Mr. Boucher. So your answer is, the trend is positive.
        Ms. Madison. Yes, it is.
        Mr. Boucher. And we would see this confirmation on the
    voluntary commitments that it entails as, perhaps, accelerating
    that trend?
        Ms. Madison. Yes. I think that's reasonable.
        Mr. Boucher. Mr. Griffin, let me ask a question of you. As
    I'm sure you're aware, NBC, you, and Comcast have made a number
    of voluntary commitments respecting diversity in the areas of
    corporate governance, employment, procuring programming, et
    cetera. You support the confirmation. Is it your view that
    these voluntary commitments might encourage other media
    companies to step up and follow suit? Could we expect this to
    become an example that other media companies might be expected
    to follow?
        Mr. Griffin. Yes. I think that's the secondary benefit, but
    I think the primary benefit would be among advertisers and
    private equity and venture capitalists, because they will step
    up and say there is a distribution commitment to this type of
    programming. And then they will come into the market and say if
    it's over a decade, and we know we can invest our client's
    money into these companies and then they will get support,
    that's a direct benefit to the industry and the programming.
        Mr. Boucher. All right. So that level of investment would
    increase the volume of independent programming that might
    encourage, entice some of the other media companies, but select
    the programming they think is the most attractive and
    appealing. You have more volume and more companies might be
    willing to accept your content. Would that be a fair
    conclusion?
        Mr. Griffin. Supply and demand.
        Mr. Boucher. Mr. Jackson, would you care to comment on
    these letters?
        Mr. Jackson. Well, yes. I'd like to share with you that I
    tried to purchase Eye on Media this past December when they
    were in bankruptcy. I went in with a hedge fund to purchase the
    debtor in possession paper. The current management had offered
    $150 million. Our package was $250 million, at which time we
    went through appeal, and went through the courts in the New
    York area, and there were aggressive bankruptcy practices
    issues that they had. And we were unsuccessful.
        But here's another case where minorities, and I was leading
    the group, showed up with more money than the current
    organization that failed in its operation of 64 radio and
    television stations, but we could not have equal access. So,
    I'm just a little bit concerned about the conversation that's
    happening now, because I'm not really concerned talking about
    diversity, I'm talking about equal opportunity in that access
    to stations that affect the public interest.
        What I'm talking about is equal opportunity, not diversity.
    I think it would be too much of a burden to place upon the
    owners of Comcast and NBC to have, to be able to select
    philanthropy. I think there's enough entrepreneurs in the
    community that like to shape our own destiny without having
    someone else that needs to work up the bottom line for their
    company to be concerned about how they will diversify. If we
    had access to ownership, we can diversity ourself. We can hire,
    and we can reverse diversity where blacks can hire Caucasians,
    or not necessarily Caucasians have to put blacks in front of
    the screen. I think that's very important.
        And I will tell you that in Chicago, a community that's
    over 50 percent female, there's less than 6 percent ownership
    in television and radio by females. So, in order to move
    America forward, I think women and children have to have a
    place on the agenda. So, it's not about getting a black on the
    screen, or whatever. It's also effecting what the demographics
    are.
        I've seen more fictitious programming on a child that was
    not in a balloon, dealing with CNN and everybody running their
    programming that over 50 million Americans facing hunger, more
    than a million American students going to school that are
    technically described as homeless by the Department of
    Education, so where's the real news, where's the real content
    coming from, not just the window dressing. So, I would like the
    conversation to be about opportunity, not philanthropy, not
    about just diversity, but about the divestiture, so we can have
    equal opportunity, and equal access to create more.
        Mr. Boucher. OK. Thank you very much. My time has expired.
        The gentleman from Indiana, Mr. Buyer, is recognized.
        Mr. Buyer. Mr. Jackson, you kind of pulled me in. Do you
    want me to believe that minority ownership directly relates to
    minority programming? Is that what you want me to believe?
        Mr. Jackson. That minority? Say it again, I'm sorry.
        Mr. Buyer. Minority ownership directly relates to minority
    programming.
        Mr. Jackson. Could you further explain?
        Mr. Buyer. No, is that the statement that you want me to
    believe based on your statement?
        Mr. Jackson. Yes. Correct.
        Mr. Buyer. And in order to achieve that, are you saying
    that we're to ignore economics principles?
        Mr. Jackson. No.
        Mr. Buyer. OK. And if we say no, then how is it achieved?
    It's almost like with Mr. Griffin, your testimony. I was
    following you all the way up to where you made your comment,
    ``If my company was paid for every one of the 500 million
    potential ad impressions, I could make my own run at NBC.''
    Well, that's if everyone would buy every widget every
    manufacturer made in my congressional district, they'd make a
    lot of money. I mean, I don't know how--I know I followed you
    all the way up until you made that statement, I want you to
    know.
        I also want to put this on the record, Mr. Griffin. I want
    to congratulate you. I think you've had an extraordinary
    career. And I read your statement last night. I've also
    followed you, so I want publicly to say, and I wanted to take
    the opportunity to say it personally, that I respect you, and
    congratulate you on your career.
        Mr. Griffin. Thank you.
        Mr. Buyer. Your statement with regard to some of the
    programming with regard to--that fell out, ``Girlfriends,''
    ``Eve,'' ``All About Us,'' ``Everybody Hates Chris,'' there is
    something else in the marketplace, is there not, Mr. Griffin,
    that the total audience reach must be great enough to cover the
    cost of production. Isn't that a basic in your business?
        Mr. Griffin. Yes.
        Mr. Buyer. Yes. And if it doesn't work, they're going to
    cancel the show. That happens a lot, doesn't it?
        Mr. Griffin. Well, yes, but there are three parts of this.
    One part is the cost of the programming. The other part is the
    availability of distribution, and then the third is revenue
    generate, or here's the profit.
        Here's the problem. When you have a success, like when you
    have a ``Seinfeld,'' you make a--if there are 10 million
    viewers, advertisers will pay you for all 10 million viewers.
    If you have ``A Different World,'' which was as big as
    ``Seinfeld,'' but it was on and 10 million viewers, advertisers
    were only paying you for 8 million, because the African
    American budget stops at a certain amount, so the minority
    budgets at advertisers are smaller, which means their money
    runs out, so you don't get paid the same. So, you're actually
    being paid less money per viewer than you would for a white
    household because the budgets are smaller. And what that means
    is there's a defect in the market.
        Now, when there are market defects, it creates
    opportunities for some people to take advantage of. What we're
    trying to say, what we've been saying to Comcast, at least on
    the OnDemand platform, what should be independent areas, and
    what independent is, there is an opportunity now to capture
    more of that market because of the defect, but in order to
    solve the defect, we have to go to advertisers and get them to
    commit to pay us for every view or impression generated. I
    mean, what you're saying is a textbook argument, which is hey,
    not enough money, cancel the show. Yes, but the issue, you
    know, I think Congresswoman Waters said it, why isn't there
    enough money. Because Coca-Cola, General Motors, Johnson &
    Johnson will not pay for every African American impression.
    That's the bottom line. There's a defect in the market. It's
    not working efficiently, so that creates an opportunity for
    Comcast and Universal to go capture it.
        Mr. Buyer. Mr. Waz, in the non-affiliates agreements--first
    of all, let me also take the opportunity, once again also
    compliment what you did in the marketplace.
        Mr. Waz. Thank you, sir.
        Mr. Buyer. I got a lot of these different companies
    together, what I thought was going to happen, even those
    outside the non-affiliates would attach their concerns into the
    non-affiliates consortium, but you can't get everybody in the
    same room. And not everybody, necessarily, agrees, so you end
    up with sort of a, even though we have a non-affiliates
    agreement that made it to the table, those three only brought
    issues which were of consensus. So, even though there's a piece
    of paper in front of us, I believe that there's still work yet
    to be done. That's just my own personal sensing from this. And
    you have to believe that, too.
        Mr. Waz. As with all the agreements that we have reached,
    or hope to reach, I'm sure there will be continued discussions
    about this.
        Mr. Buyer. Is broadcasting still relevant in the new media
    environment?
        Mr. Waz. Broadcasting is still the way to attract mass
    audiences. It's the place where special events in America,
    where America still gathers collectively to watch major events:
    sports, inaugurations and other events. So, we believe
    broadcasting absolutely has a place, and we're investing to try
    to make broadcasting in the form of NBC and Telemundo stronger
    and sustainable in the future. And working with the affiliates
    today.
        Mr. Buyer. Thank you, Mr. Chairman.
        Mr. Boucher. Thank you very much, Mr. Buyer.
        The gentleman from Illinois, Mr. Rush, is recognized.
        Mr. Rush. Thank you, Mr. Chairman.
        Let me, first of all, begin by asking Mr. Jackson a
    question. In your exchange with my colleague from Indiana, Mr.
    Buyer, what is your counsel for the need to have more
    minorities to own networks, media, and you said that if the
    minorities owned the media, then the possibility, or the
    proclivity, or reason for this conversation that more minority
    ownership would mean higher ads and there would be more
    minority programming. Is that correct?
        Mr. Jackson. Yes, sir.
        Mr. Rush. Now, that's very important, and I agree with you.
    But would you limit your ownership, or limit those same results
    to--let me put it like this. If an African American owned a
    station that was aimed at say a mostly white market, would that
    African American be successful owning that station, or is it
    just limited to an African American market to have to provide
    media opportunities and media services to the African American
    community?
        Mr. Jackson. That's a great question. It would speak to the
    local demographics, that the NBA can be majority owned by
    Caucasians, and predominantly having the players to be African
    American. They can have an international market appeal. Well,
    that speaks to the demographics as it relates to basketball.
        The same thing would happen, if you're in a rural area
    being mostly Caucasian, naturally, you would adjust the
    programming. And the same thing would happen here in the City
    of Chicago, where the local content and news, we have very
    pressing issues, could reflect the community interest.
        Mr. Rush. Just because it's African American owned network
    does not mean that that network should be, or has to be geared
    toward an African American demographic. Is that right?
        Mr. Jackson. Correct. And I would cite the example of
    Motown, and the music that it created. There are general
    markets that we--I don't know if Mr. Buyer was asking me a
    question, or made a statement, but I would say that as far as
    local, about African American ownership and content, that I
    would look at--I don't know if it was denied, or if it was an
    oversight, for the first time my son saw the word ``hate'', and
    asked me could I share with him how it was a bad word. He was
    looking at an outdoor billboard, and the billboard read
    ``Everybody Hates Chris.'' And he's a young African American
    male child, and he sees ``Everybody Hates Chris,'' but
    ``Everybody Loves Raymond.'' So, if we had access to
    opportunity for ownership, we could help shape that imagery
    ourselves.
        And I would refer you to the FCC document that Mr. Griffin
    was----
        Mr. Rush. No, you're on my time.
        Mr. Jackson. Sorry, sir.
        Mr. Rush. I'm being charged with it, so let me move on.
        Mr. Buyer. Mr. Rush?
        Mr. Rush. Yes.
        Mr. Buyer. Will you yield to me an extra minute?
        Mr. Rush. Yes.
        Mr. Buyer. I just want to touch this, because you referred
    to something that I would make comment on.
        The reason I had made that perhaps as a statement, I wanted
    to get a sense of what you're urging not just us, but people to
    believe based off your testimony. OK? Well, I can agree with
    you that you say a minority owner can increase minority
    programming, I do not believe that a minority owner would say
    that that only means minority programming. I don't believe
    that, because it's economics. You're a businessman. That's why
    I compliment Mr. Griffin. You're going to follow the dollar.
    You're going to also follow the eyes. You're going to also
    follow the advertising. You're also an artist, and you can
    build things, and want to be creative. You want to deliver into
    the marketplace. And that's what's important, especially
    capturing the new wave on the delivery of video services. And
    that's what Mr. Rush----
        Mr. Rush. I'm reclaiming my time, Mr. Chairman. I know my
    timing and I do have some very important questions I want to
    ask.
        First of all, I want to--after listening to, and discussing
    and sometimes heated exchanges with a number of interested
    stakeholders, Mr. Chairman, I want to ask for unanimous consent
    for this Committee to accept additional information in the form
    of a letter, as mentioned by Mr. Waz earlier as to the
    agreement that Comcast submitted to the FCC that outlines their
    specific plan for including the minorities in a more robust and
    regular basis.
        Mr. Boucher. No objection.
        Mr. Rush. All right. And a little more with the letter just
    entered into the record. Can you expound more on, if you will,
    on the Venture Capital Fund that you have included in terms of
    this letter? Can you expound more on that? What--can you give
    us more of the details, and what problems are you attempting to
    solve going forward?
        Mr. Waz. Mr. Rush, thanks for the opportunity to talk more
    about it. I've been a friend of David Honig, the Minority Media
    Telecommunications Council for probably three decades now, and
    he has fought and tried for many years to try to create more
    opportunities for minority ownership, pursuing policies such as
    tax certificates, which have been supported on a bipartisan
    basis at various points and other efforts to support minority
    ownership in traditional media.
        Over the last few years, he and I have been talking a lot
    about what are the opportunities in new media and in technology
    for minorities, and this is an excellent time to be moving
    forward to ways that in an internet-based world where frankly
    there are fewer barriers, fewer distribution barriers, that
    there could be more innovation, more opportunities for minority
    entrepreneurs.
        I know that Commissioner Clyburn of the FCC has mentioned
    on a couple of occasions that she knows someone, an African
    American who started a very successful Web site for, I believe
    the number is $256, that may be on the high side, those numbers
    she cited, but it was--you can do a lot with a little in this
    market.
        What we think would be beneficial is to create more
    opportunities specifically to seek attractive young talent,
    people who would be interested in moving into the new
    technology fields from the minority community, and coming up
    with appropriate funding base to get them started. So, the
    notion we've laid out in the letter to you this morning says
    that we are prepared to make $20 million of investment capital
    available through a new program within Comcast that will look
    exactly to those sort of opportunities, and work with a diverse
    leader of that fund effort to identify funding opportunities.
        Mr. Rush. Will you address and expound upon, or you have in
    your letter divestiture of 40 assets and minority ownership.
    What do you mean by that, and what is that aimed at?
        Mr. Waz. In connection with this transaction, the only
    anticipated divestiture of asset is the Station KWAY in Los
    Angeles. That station is currently owned by NBCU-Comcast until
    its closing and what happened at KWAY. But NBCU has made a
    special effort, in fact, has hired an NTC, which has a
    brokerage business, has been very successful at finding
    minority buyers, minority purchasers for radio, and cable and
    TV stations over the years to create that ownership opportunity
    there.
        In the event of any other cable divestiture, or broadcast
    divestiture in the future, which would be required out of this
    transaction, we will be similarly creative, and similarly
    destructive in looking for minority ownership opportunities.
        Mr. Rush. Mr. Chairman, I yield back.
        Mr. Boucher. Thank you very much, Mr. Rush. Ms. Waters.
        Ms. Waters. Well, thank you very much, Mr. Chairman. I
    would like to preface my remarks by saying that my colleague
    was correct about this merger being under the radar screen,
    being very quiet, not being talked about until I requested and
    received from the FCC an extension of the comment period. I got
    45 extra days for the comment period because it had been very
    quiet. And I also requested of the FCC to hold hearings, and
    one will be coming up. And I got the Chairman of the Judiciary
    Committee, Mr. Conyers, to hold a hearing, and I'm very
    appreciative for this hearing.
        Why is all of this important? It is important because
    neither NBC, nor Comcast, made any of these moves that they're
    describing until all of this began to unfold. Since we have
    been highlighting this merger, and talking about the lack of
    diversity, then we're finally getting some people coming
    forward to talk about doing some things.
        As a matter of fact, the Latino that was placed on the
    board of, what is it, NBC or Comcast? Comcast plans to add a
    Latino Board member amid proposed NBC deal. This happened in
    the past few weeks. The proposal that you just alluded to that
    you're giving to Mr. Rush today, I'm glad we're having this
    hearing, so that you can give it to him, because we've not
    heard about that until the last few days.
        The Memorandum of Understanding that you have with the
    Latino group came about in this period of time that we created
    to have more comment, and to have hearings. So, we have to keep
    up the pressure, because despite the fact that both NBC and
    Comcast talk about their commitment to diversity, it has not
    been evident. You don't have diverse companies. I don't know
    how many years you've been working at this, but you've not been
    successful. So, we've got to help you. We've got to help you to
    be successful.
        It is absolutely unacceptable. We're talking about some
    programming, and I think the Chairman asked a significant
    question, because the devil is in the details, about whether or
    not you create channels and opportunities. We're talking about
    distribution and carriage, and there's no commitment to that.
    He questioned you very closely, and you did not give him a
    specific commitment to distribution and carriage.
        Let me just go to another aspect of this that bothers me.
    Let's take a look at NBC News. Early today, Glen Berry, Bill
    Cowan, Fred--all white. Today we have some diversity, Matt
    Lauer, Meredith Vieira, Ann Curry who I guess is going to be
    gone, along with Al Roker, MSNBC, First Look, all white, Glen
    Berry, Thomas Roberts, Way Too Early with Willie Geist, all
    white. My friend, Morning Joe, Joe Scarborough, Mepa, Rasinski,
    Willie Geist, all white. All of this is MSNBC. The Daily
    Rundown, Chuck Todd, white. Savannah Guthrie, white. MSNBC
    Live, Chris Jansing, Tamron Hall, one black, Andrea Mitchell
    Reports, white. Hardball, Chris Matthews, the Ed Show, my
    friend Ed Schultz, all white. Countdown with Keith Olbermann,
    like him a lot, all white. The Rachel Maddow Show. Well, what
    is that?
        When you sit here and you talk about this vast audience
    that you have, that's depending on the news, you've got to ask
    yourself why, why don't we have more diversity in the news
    that's reporting from African American, Latino, Asian
    perspectives on what's going on. This can't continue. And if
    this merger takes place, if this consolidation takes place, and
    we don't have a way of enforcement by which we can force you to
    live up to commitments for diversity, we end up in a democracy
    with consolidation that does not serve the best interest or the
    images of all of the people who deserve, as citizens of this
    country and this democracy, to be served.
        I could go on, and on, and on about all of NBC shows. When
    the Chairman first came to the Judiciary Committee, Mr. Zucker
    told me that they didn't have any African American shows in the
    new season because he couldn't find any producers and
    directors. And I said I know a lot of them, let me help you.
        I don't understand how this business works. And we have
    staff full-time working to discover exactly how you do work,
    and what you have, and what you don't have. And I want you to
    know you have failed miserably. I yield back the balance of my
    time.
        Mr. Boucher. Thank you, Ms. Waters.
        I want to say thank you to the witnesses for joining us
    here today. Ms. Madison, to you, in particular, congratulations
    on your long career, and commitment to diversity issues. To all
    of the witnesses, thanks for the constructive comments that
    you've made. You have made this hearing a success, and I very
    much appreciate the commentary you have shared with us today.
        Mr. Rush, did you want to say a word?
        Mr. Rush. Yes, Mr. Chairman, before we adjourn. I just
    would like to state for the record that as we proceed down this
    path, I'm not sure what is being filed. I'm not sure whether
    the FCC, what their final ruling will be. I'm not sure what the
    Justice Department's final ruling will be. My colleague from
    California, Ms. Waters, made some very profound statements. And
    one of the things that I know is that this is, or can be, or
    should be if the stakeholders, the affected parties, Comcast
    and NBCU, we can begin to rewrite the sordid history,
    particularly over the last eight years, continuing the trend in
    media ownership.
        I sat on this Committee for 15 or more years now, and the
    last eight years have been the most horrendous eight years that
    I've seen in terms of the FCC. Although the Chairman, who is
    the outgoing Chairman, always had a receptive ear, making empty
    promises and pledges that he was going to look for new
    ownership, he never engaged not one millisecond in pursuit of
    media opportunities for ownership for black people in media
    ownership. That day is over, and that time has past. He is
    gone. This is a new day, new time, new opportunity. And we have
    a new administration, new members of the FCC. We will work
    vigorously in terms from an oversight perspective, and also
    from an activist perspective to ensure that, whatever you are
    promising, it's those promises that you make.
        Whenever you return back before the appropriate authority
    and that you're going to be dragged through the mud and the
    world will know that you have broken your promises. So I want
    to know that these were just not being done in the back room.
        I hope that this is the beginning of the something
    meaningful and important, and we can try to level the playing
    field as it relates to minorities and media ownership. Mr.
    Chairman, with that, I yield back the balance of my time.
        Mr. Boucher. Thank you very much, Mr. Rush. I'm going to
    ask unanimous consent to insert into the record a letter signed
    by Tracy Jenkins Winchester, the President of the Multi-
    Cultural Network. Without objection, this will be made part of
    the record.
        Our witnesses have done a great job today. Our thanks to
    you, our thanks to members of the panel for their decisive
    questions, and this hearing stands adjourned.
        [Whereupon, at 11:52 a.m., the Committee was adjourned.]
        [Material submitted for inclusion in the record follows:]

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