NBCU Conditions Require Comcast To Sell Content to Apple, Gallant Says

Conditions from Comcast's buy of control in NBCUniversal require Comcast to sell NBC content to Apple's over-the-top service, emailed Guggenheim Partners analyst Paul Gallant investors Tuesday. The conditions require NBCU to sell its programming to online video distributors at comparable rates to other programmers, and Apple already has deals with Disney and Fox, Gallant said. “Apple could use the condition to obtain NBCU programming that is comparable to whatever Apple acquired from Fox, Disney, etc.” If Apple made the transaction condition argument, the FCC likely would need to decide what is “comparable programming” and “economically comparable terms,” Gallant said. “The potential for regulatory delays might be a deterrent for Apple to pursue the regulatory enforcement angle.” The FCC OTT multichannel video programming distributor rulemaking “shows the agency is highly focused on promoting OTT competition and probably would move quickly on any Apple complaint,” he said. Comcast didn't comment.