Final answer:
Charter Communications' planned acquisition of Time Warner Cable and Bright House Networks for increased bargaining power represents a quest for economies of scale and market influence. There's a debate about whether such mergers benefit or hurt consumers due to impacts on competition and prices.
Step-by-step explanation:
Charter Communications' intention to purchase Time Warner Cable and Bright House Networks to gain greater bargaining power in negotiations with channel owners like Disney is an example of an effort to benefit from economies of scale and increased market leverage. This consolidation within the telecommunications and media industries can potentially lead to improved efficiencies and cost savings, as well as give the merged company a stronger position in content acquisition. However, it also raises concerns about reducing competition and the potential impact on consumer prices and choices, reflecting the complex issues raised by mergers and acquisitions in the industry.
Historically, such mergers have been met with mixed reactions from consumer advocacy groups and federal regulators. The Telecommunications Act of 1996 significantly changed the media landscape by allowing greater consolidation, and decisions like the federal government's approval of the Comcast-NBC Universal merger in 2011 have shown the ongoing trend toward fewer but larger media conglomerates. Economists and regulatory bodies continue to analyze the long-term effects of these mergers on competition, consumer prices, and the variety of services offered to the public.