Joseph Alioto, an attorney for The America Channel, which is based in Heathrow, Fla., said the two big operators freeze out independent channels like TAC because the independents produce programs that compete against their own offerings.

Cable TV channel sues Time Warner, Comcast

Comments: If you doubt that the networks and cable industries are centralized or think there are no consequences to this centralization, take a look at this lawsuit. Even though there are hundreds of stations out there, there are only a few in key controlling positions, the cable operators and the network owners. The suit alleges that The America Channel has been shut out of the market by the cable companies.

This is where the internet is different. It is not yet centralized. It is heading in that direction with Google taking over the searches and companies like A.O.L (Time Warner...or whatever it is called these days) driving out competition. It also helps that companies are prevented by law from discriminating access to the sites. Hence TrashYourTV.com still loads onto your computer as fast as Disney's go.com. For now at least.

Another consequence to the enormous power that these companies hold is that governments are "competing" to attract these companies to their state.

The Tennessee House and Senate have passed the Visual Content Act 2006, approving $10 million for the development of increased film and television activity across the state.

The measure now goes to Gov. Phil Bredesen's desk. The bill's purpose is to court out-of-state productions and develop ways to assist Tennessee filmmakers.

State legislature tries to boost film and TV activity

That is $10 million more to feed an unwieldy and overcentralized industry. Truly that money would be better spent on the people, not multinational media corporations. If it was just to support local filmmakers, that would not be too serious. However, it seems clear that the main purpose of the legislation is to "court out-of-state productions". The story itself highlights all the monetary benefits of courting these "out-of-state productions," not the benefits to local film producers.

edit: It looks like LA might be moving agressively soon to "court out-of-state productions."

In a study to be released today, FilmL.A., a nonprofit corporation that handles film permits for the city and much of the county, concludes that other locales are steadily erod- ing Los Angeles' core television pilot business, costing the area thousands of jobs and as much as $70 million in lost revenue.

Number of TV Pilots Shot in L.A. Drops 23%

Comments: Any way you look at this, it is a sign of a major power imbalance when governments struggle to court outside businesses. It is not a good sign at all.