US: Netflix enters Comcast, TWC merger debate in new letter

After being called upon to publicly weigh-in on the proposed merger between Comcast and Time Warner Cable, online streaming service Netflix has officially opposed of the cable tie-up.

Netflix released its first-quarter results to shareholders on Monday, in which the company argues Comcast’s plans to acquire its rival would give the company a monopoly, allowing the firm to charge “unprecedented fees” to service providers, including Netflix.

Netflix recently inked a deal with Comcast, however, to ensure quality video streaming to its viewers. Financial details of the agreement, announced last February, were not disclosed.

Comcast senior vice president Jennifer Khoury responded to Netflix’s letter opposing the merger, arguing, “Netflix’s opposition to our Time Warner Cable transition is based on inaccurate claims and arguments. There has been no company that has had a stronger commitment to openness of the Internet than Comcast.”

Netflix’s letter, signed by chief executive Reed Hastings, also called for stronger net neutrality rules that would prevent Internet service providers from discriminating against content providers in terms of streaming priority and charges.

Netflix’s letter follows calls from Senator Al Franken (D-MN), who has become a leading Congressional opponent to the Comcast merger.

Full Content: Reuters

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