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AT&T’s $67 billion debt-and-equity offer for DirectTV, along with Comcast’s pending $45 billion deal for TimeWarner Cable, make clear that the market for digital entertainment delivered over the Web has moved from a high growth to a growth-and-consolidation phase. With telecom networks in Dallas and New York squaring off against cable companies in Philadelphia and the Big Apple for control of the pipes that deliver Web video and music, the pricing power in digital entertainment is shifting decidedly east.

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