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By Jason Stipp | 10-22-2010 02:50 PM

Five Battle Lines in the Market

Morningstar markets editor Jeremy Glaser recaps the market's recent battles between cable TV and content providers, growth vs. inflation, and more.

Jason Stipp: I'm Jason Stipp for Morningstar. Competition is certainly nothing new in the market, but we have seen some interesting battle lines drawn recently.

Here with me to offer a recap is Morningstar market's editor, Jeremy Glaser.

Jeremy thanks for joining me.

Jeremy Glaser: You are welcome Jason.

Stipp: So, what do you have for the Friday Five this week?

Glaser: Well, we are going to take a look at battle lines that have been drawn between News Corp and Cablevision, between Democrats and Republicans, between good growth and bad growth, emerging markets and developed markets, and finally McDonald's versus the World.

Stipp: Well I always am interested in hearing about what's happening on cable, because it is such an important part of my life. What's that story with Cablevision and Fox? They got a little heated earlier this week.

Glaser: Yeah, absolutely. News Corp, which is the owner of Fox, got into a really big fee dispute with Cablevision, and they started pulling a lot of their channels. You know they pulled starting with the stuff that people might not care about as much and threatening to pull even the regular Fox network.

And it is something that is kind of concerning for people, because obviously, consumers aren't negotiating directly with News Corp to see how much they pay. Cablevision is an intermediary there. They don't want to pay more for the content. It opens up a lot of questions about, who is going to pay for content in a more decentralized world, if you can get the stuff on the Internet.

But another interesting wrinkle here is in fact the Internet. And it is the idea that, what News Corp did was block people who have Cablevision Internet, from being able to view the fox shows on Hulu. So, not only could they not get it on their TV, they also couldn't get it on the web.

And we talked a lot about net neutrality before, and this shows why net neutrality actually is important and does affect people's lives, because even if you were just an Internet subscriber and you had no interest in the TV or weren't paying for TV, you all of a sudden couldn't get access to that content. It's not like you can quickly switch to another Internet provider; I think a lot of people were left with a bad taste in the mouth. You know, they have kind of retreated from that position, but certainly there was an aggressive negotiating tactic, and I think that this could portray in a lot of future battles.

Stipp: Sure, it seems that the more interconnected all these media get, the more cause for trouble, when these situations come up for the regular consumer.

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