Comcast and Netflix have not been getting along recently as it is, considering the internet service provider (ISPs) was slowing internet speeds to Netflix subscribers. Although that issue has been temporarily fixed by the video streaming service agreeing to pay Comcast extra to improve the connection, there is now another issue that is making the headlines.
In a statement to shareholders Monday, the company came out against a possible Comcast-Time Warner Cable merger, suggesting that it would only make the current net neutrality situation worse.
Since Comcast is the most common ISP and Time Warner Cable is second, there are definitely a few reasons why a merger could make matters worse in the United States. Although some are sticking up for the possible deal, it is now clear that Netflix doesn”t want to be paying even more to boost streaming speeds. It seems possible that if the two companies were to combine and 60% of the US became Comcast customers, Netflix would have to make a larger deal.
Comcast has now responded to Netflix”s criticism of the merger, providing a few reasons why it feels that it has done nothing wrong in regards to net neutrality. Among the points that it brings up are:
- Deals between ISPs and other companies (like Netflix) are very common and Comcast has “thousands” of them.
- Netflix came to Comcast when the deal online casino canada was being made, not the other way around.
- There was no need for Netflix to work directly with us if it didn”t like the terms of the deal.
Now, it is true that some companies do have extra deals with ISPs like Comcast, but those were not put in place because an ISP deliberately slowed down customer connections to a specific service. Also, while it is likely true that Netflix initiatied the conversationg with Comcast, it didn”t have much of a choice. That point was already brought up by Netflix CEO Reed Hastings, who made it clear that making a deal was their only option for the time being.
The potential merger between Comcast and Time Warner Cable may still not be approved, but regulators could also allow the two companies to combine their forces. Between the current lack of net neutrality laws and the merger, things aren”t looking good for the future of the internet in the United States.
Question – Do you think the merger would eventually hurt net neutrality further?
Summary: Netflix has now opposed the potential Comcast-Time Warner Cable merger. Comcast responded by downplaying Netflix”s reasons for making a deal with the ISP in regards to net neutrality.
image credit: cnn