Boston, MA 10/16/2014 (wallstreetpr) – Netflix, Inc. (NASDAQ:NFLX) will not give up on its fight to stop Comcast Corporation (NASDAQ:CMCSA)‘s move to buy competitor Time Warner Inc (NYSE:TWX). Though Netflix entered into an arrangement with Comcast to facilitate speedier video streaming to its consumers. But, it could not deny the underlying problem with this arrangement.
Influential Position
Under such scenario, if Comcast Corporation (NASDAQ:CMCSA) happens to acquire Time Warner then it will only aggravate problems for Netflix. Comcast already has a strong position in the industry and, therefore, its acquisition could translate more influential position, which will only impede Netflix’s service to consumers. In a letter to shareholders, Netflix has come open about its stance to favor net neutrality. It certainly wants to prevent large internet service providers (ISPs) from hampering its services with the intention to solicit extra money. Thus, Netflix will continue to oppose Comcast Corporation (NASDAQ:CMCSA) merger with Time Warner or at least will plead the government to prevent any more levy of charges on content providers by the ISPs.
February Deal
Netflix’s strong non-acceptance for Comcast Corporation (NASDAQ:CMCSA) and Time Warner deal stems from its agreement in February. Before the agreement, the Netflix consumers on Comcast’s network complained of slow streaming service. Hence, under the agreement, the content provider was forced to pay a sum of money to Comcast in order to improve video streaming to its consumers. The practice is known as interconnection.
In response, Comcast Corporation (NASDAQ:CMCSA) representative has said that the interconnection is properly addressed in its merger review with Time Warner Inc (NYSE:TWX). The company stressed that the issue is not company specific rather industry specific, which is already under investigation by the Federal Communications Commission. Comcast believes that the net neutrality issues should not come in the way of a deal as being n industry-wide matter, it has nothing to do with the merger as such.
