Boston, MA 08/29/2014 (wallstreetpr) – Comcast Corporation (NASDAQ:CMCSA) is already receiving a barrage of criticism and even complement over its offer to purchase Time Warner Cable Inc (NYSE:TWC) for about $45 billion. Netflix, Inc. (NASDAQ:NFLX) is the latest major customers of Comcast to wave a red flag over the anticipated merger deal. Netflix depends on Comcast for its video streaming business.
The merger of Comcast and Time Warner Cable is expected to result into a giant entity that controls much of the broadband Internet and cable television. The companies have already told regulators that the merger is in the best interest of their current and future customers. However, questions have been raised whether such an arrangement to combine two dominant companies in the media and Internet business would reduce customer choices or even make the services more expensive. That is where Netflix is coming in to make a case for the sake of the consumers.
Netflix petition
In a 250-page petition, Netflix asked the regulator to consider rejecting the proposed merger between Comcast and Time Warner Cable. It warned that the power that the combined entity would have would be too big to be good for the Internet and cable TV consumers. The document raises questions about service quality, costs and other practices that may hurt consumers and streaming video providers.
An outage experienced this week by Time Warner Cable customers has also raised concerns about the planned merger between the company and Comcast Corporation (NASDAQ:CMCSA). Time Warner Cable customers suffered an outage in the wee hours of Wednesday, but the company said the issue was caused by an update problem, which lasted for just a few minutes. However, analysts said it could have a bearing on how the planned merger progresses before the regulators.
Trying to be good
In recent times, Comcast (NASDAQ:CMCSA) has been trying to improve customers experience, boosting internet speeds and related issues to make them happy. The company also expects its acquisition of Time Warner to increase value for its shareholders.
