Click Here!Click Here!
Home / Technology / This Is Why The Comcast-Time Warner Merger Is A Threat For Netflix, Inc. (NFLX)
This Is Why The Comcast-Time Warner Merger Is A Threat For Netflix, Inc. (NFLX)

This Is Why The Comcast-Time Warner Merger Is A Threat For Netflix, Inc. (NFLX)

By: Bob Cramer

Published: Dec 23, 2014 during 4:59 pm EST

The Federal Communications Commission (FCC) has again behind a examination of a partnership between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Inc (NYSE:TWX). The elect announced currently that it was pausing a examination until Jan 12, as Time Warner had not submitted a compulsory documents.

Time Warner member have betrothed to furnish a papers on Monday, though a regulator pronounced it will need time to examination a paperwork.

The Comcast Corporation and Time Warner Inc partnership has been in a spotlight for a few months now. The partnership of these broadband use providers poses a critical hazard to Netflix, Inc. (NASDAQ:NFLX), that could see a negotiate energy exceedingly singular within a industry.

News of a partnership done headlines in Feb this year, with Comcast initiating a routine to finalize a regulatory requirements. The association eventually filled for capitulation with a FCC in April. The merger, however, is nonetheless to be authorized by a US Department of Justice and a FCC. Last month, vital swell was done in a transaction, with both Time Warner and Comcast shareholders commendatory a intensity merger.

Comcast and Time Warner both work in a party industry, and have a poignant marketplace share in a broadband services space. The total marketplace capitalization of a dual companies is roughly 9 times that of Netflix. The partnership between a dual entities could potentially emanate a corner within a industry, with a new association braggadocio a 60% marketplace share, and a total user bottom of an estimated 35 million subscribers.

The corner could infer to be damaging for Netflix and several other online calm providers, as they can be forced to compensate a price by these ISPs – to yield high-speed Internet to their subscribers. Netflix has already sealed agreements with a few US ISPs, including Comcast, to make certain their subscribers get a compulsory Internet speed to tide a HD content. However, there is a poignant cost compared with these agreements, and if a partnership was to take place, a newly shaped association will have a energy to change marketplace prices.

About admin

Scroll To Top