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Comcast says Netflix is free to express opinions, but the opinions should be based in fact

Back in February, a deal was reached that would see Comcast acquire Time Warner in a purchase worth $45.2 billion. Before that deal closes, there are a number of regulatory approvals that are needed. As with most major acquisitions, companies come out for and against the deal.
 
In the case of the TWC/Comcast acquisition, Netflix has come out strongly against the deal. Netflix says that the internet faces a threat from the largest ISPs driving up costs for everyone else as they seek the biggest profits possible.
 
Netflix wrote, "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). As DSL fades in favor of cable Internet, Comcast could control high-speed broadband to the majority of American homes."
 
"Comcast is already dominant enough to be able to capture unprecedented fees from transit providers and services such as Netflix. The combined company would possess even more anti-competitive leverage to charge arbitrary interconnection tolls for access to their customers. For this reason, Netflix opposes this merger."
 
Comcast responded to Netflix's claims writing, "Netflix's opposition to our Time Warner Cable transaction is based on inaccurate claims and arguments."
 
Comcast and Netflix have a deal in place now that saw Netflix speeds for Comcast customers improve after Netflix and Comcast signed the agreement. Comcast went on to say that Netflix approached it for the deal and that if it doesn't like the terms, there are a number of other companies that Netflix could work with.
 
Comcast added, "Internet interconnection has nothing to do with net neutrality; it’s all about Netflix wanting to unfairly shift its costs from its customers to all Internet customers, regardless of whether they subscribe to Netflix or not."

Sources: Comcast, Netflix (PDF)





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