Page 24 - aruba-today-20180317

A24 TECHNOLOGY
Saturday 17 March 2018
A media giant in the balance: AT&T antitrust trial kicks off

By MAE ANDERSON zon and others. It denies cable boxes.
AP Technology Writer the government's assertion THE OUTCOME
NEW YORK (AP) — On that the merger will limit "The real fundamental
Monday, AT&T squares off choice and lead to higher thing this trial will decide is
against the federal govern- prices for consumers. how much room does the
ment in a trial that could "Blocking the transaction media industry have to use
shape how you get — and would deny consumers scale to combat the inter-
how much you pay for — these benefits and shield net giants that are eating
streaming TV and movies. large, vertically integrated their lunch right now," said
AT&T says it needs to gob- firms such as Comcast/ B. Riley FBR analyst Barton
ble up Time Warner if it's NBCU, Netflix, Google, Am- Crockett.
to have a chance against azon, and Facebook from If the judge blocks the
the likes of Amazon, Netflix new competition on their deal, a chill over media
and Google in the rapidly own turf," the company deal-making is likely. Big in-
evolving world of video en- wrote in its pre-trial brief. ternet players like Amazon
tertainment. In this Oct. 24, 2016, file photo, the AT&T logo is positioned above THE GOVERNMENT'S CASE or Google could decide to
The Justice Department's one of its retail stores in New York. The government brush- keep building up their own
antitrust lawyers say that if Associated Press es off the argument that content offerings rather
AT&T and Time Warner are the proposed purchase is than growing them by ac-
allowed to combine, con- views of how the content block the deal this past No- about offering consumers quisitions.
sumers will end up paying industries look right now, let vember. more choice. Instead, it But if the court lets the deal
more to watch their favor- alone in the future." AT&T'S CASE says, the deal will lead to go through, it could easily
ite shows, whether on a TV In October 2016, AT&T of- Almost 60 percent of Amer- less competition and inno- spur a wave of similar deals
screen, smartphone or tab- fered to buy Time Warner icans still get TV primarily vation while bringing high- as other distributors — think
let. for $86 billion. Dallas-based from traditional cable ser- er prices for consumers, as major cable, satellite and
"On one hand, the govern- AT&T Inc. provides wireless, vices, according to a Pew AT&T could withhold Time phone companies — bulk
ment is saying this is the Old broadband and DirecTV Research Center report. Warner programming from up with entertainment pur-
World and AT&T Time War- satellite services via phone But that is starkly divided other distributors or offer it chases in order to compete
ner is saying this is the New and TV. New York-head- by age. About 61 percent more cheaply only on its against rivals born on the
World," said Larry Downes, quartered Time Warner of people aged 18 to 29 own network. internet.
senior industry and innova- owns the HBO, TNT, TBS and primarily use streaming ser- The Justice Department is A middle-ground compro-
tion fellow at Georgetown CNN networks and sports vices — compared with 10 similarly dismissive of the no- mise is also possible if AT&T
University. "They're argu- programing including Ma- percent of people aged 50 tion that the mega-merger loses this round. The com-
ing completely different jor League Baseball's play- to 64. could promote competi- pany could agree to sell off
offs and the NCAA's March AT&T says the merger is tion to big internet players some businesses or comply
Madness basketball tour- necessary to compete as such as Google and Netflix, with other restrictions in or-
nament. more people use streaming noting that most people der to win approval for the
The government sued to services like Netflix, Ama- still watch TV via traditional merger.q

'Slap Rihanna' ad on Snapchat brings outrage, apologies

LOS ANGELES (AP) — An ad profuse apologies from the
on Snapchat asking users if company behind the visu-
they'd rather "Slap Rihan- al-messaging app.
na" or "Punch Chris Brown" Snapchat said it is inves-
has spawned widespread tigating how the ad for a
outrage, including from the mobile video game called
singer herself, and brought "Would You Rather" made it

In this Sept. 19, 2017 file photo, singer Rihanna poses for photog-
raphers at the Fenty Beauty by Rihanna fashion range launch
during London Fashion Week.
Associated Press
to the app. mess!" Rihanna, 30, wrote.
Rihanna, who Brown was "I'd love to call it ignorance
convicted of assaulting but I know you ain't that
when she was his girlfriend dumb!
in 2009, posted an angry You spent money to ani-
statement on her Snapchat mate something that would
and Instagram accounts. intentionally bring shame
"I'm just trying to figure out to DV victims and made a
what the point was with this joke of it!!!"q