Netflix has finally taken a stance in the Comcast and Time Warner Cable (TWC) merger, which has been threatening fairness and competition for ISPs and customers.
In a letter to investors, Netflix stated that it would prefer a diverse market of multiple ISPs offering high speed Internet. The merger of the top and second place ISPs in the US would see them hold over 60 percent of the market.
Netflix says that would allow the combined company to “possess even more anticompetitive leverage to charge arbitrary interconnection tolls for access to their customers.”
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 spe ed 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.
Read the full report from Netflix to its investors