Feeds

Netflix speaks out against Comcast–Time Warner megadeal

'Oh, and by the way, we're raising our fees as well'

Choosing a cloud hosting partner with confidence

Video service Netflix has officially come out in opposition of a potential merger between Comcast and Time Warner.

The company said in its latest earnings report that the potential for a combined Comcast and Time Warner network would result in the extraction of "unprecedented fees" from Netflix and other streaming services.

"If the Comcast and Time Warner Cable merger is approved, the combined company's footprint will pass over 60 percent of U.S. broadband households, after the proposed divestiture, with most of those homes having Comcast as the only option for truly high-speed broadband (>10Mbps)," CEO Reed Hastings and CFO David Wells said in a letter to shareholders [PDF] released alongside the company's quarterly report.

"As DSL fades in favor of cable internet, Comcast could control high-speed broadband to the majority of American homes," they wrote.

The objection from Netflix comes alongside an announcement from the company that it will be raising the price of its streaming service for new customers by one to two dollars per month, depending on country. The company said that the increased costs will go towards acquiring additional content and improving streaming on the service.

Netflix has previously clashed with service providers over the performance of its streaming video content. Earlier this year, word surfaced that the company had paid Comcast to ensure bandwidth access for its services.

Netflix later entered into a public spat with AT&T over the issue of net neutrality and uninhibited access to streaming video services. The company made a point of needling AT&T in its letter to shareholders on Monday.

"The positive is that Comcast is providing a much improved Netflix experience to their broadband subscribers, and now nearly all cable internet households receive great quality internet video," said Hastings and Wells.

"The surprising news is that AT&T fiber-based U-verse has lower performance than many DSL ISPs, such as Frontier, CenturyLink and Windstream."

The comments come amidst and otherwise promising quarterly report for Netflix. The company beat analyst earnings expectations and posted a net income of $53m on the quarter. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
4chan outraged by Emma Watson nudie photo leak SCAM
In the immortal words of Shaggy, it wasn't me us ... amirite?
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.