Boston, MA 02/19/2014 (wallstreetpr) – Comcast Corporation (NASDAQ:CMCSA), for very obvious reasons, doesn’t want Netflix, Inc. (NASDAQ:NFLX) on its set-top boxes. But the questions is whether banning Netflix from its television set-top boxes will save its business that is increasingly coming under attack from Interning content streaming providers.
Without a doubt, cable providers are concerned about future of their business in an environment where people want freedom to control what and when to watch their favorite programs. Attempts to delay the arrival of streaming providers like Netflix, Inc. (NASDAQ:NFLX) to set-top boxes are obviously at play, but how far such efforts can go is the question.
Sealing off loopholes
It has been announced that Comcast Corporation (NASDAQ:CMCSA) is offering $45 billion to acquire Time Warner. This move requires the nod of regulators to be fruitful and if it does get that approval, it will give Comcast an upper hand in the cable business. Besides reducing competition, it might result in higher revenue for the company if it choices to exercise its market might to adjust subscription fees.
Yet, it is on the same grounds that regulators may be worried about giving the deal a green-light in that consumers might end up paying through the nose for their subscription packages.
Besides the obvious reason that Comcast Corporation (NASDAQ:CMCSA) is betting on Time Warner to boost its cable business profitability and guarantee future growth, the move will also make it more difficult for streaming service providers like Netflix to break into set-top boxes. At least with will help sustain the legacy cable business.
More exclusive deals with studios
If Comcast Corporation (NASDAQ:CMCSA) takes over Time Warner, one of the obvious things would be that cable content providers will be faced with a reduced number of buyers. That move in itself might make it possible for Comcast to exercise its might in asking for exclusive deals with studio. Furthermore, this might also help the company campaign for lower content acquisition fees which would obviously boost its bottom line. Still, such a move would also stress Netflix and streaming providers of its kind.
Strong Demand
While it is obvious that Comcast Corporation (NASDAQ:CMCSA) is keen on frustrating Netflix, Inc. (NASDAQ:NFLX) by keeping it off the set-top boxes, such efforts will soon be overridden by demand. It is worth noting that services like Netflix and gaining popularity because of the surging demand for services that give people more control about what they watch and how they do that.
