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Yet another way the Comcast-TWC merger could hurt Netflix

Published Feb 18th, 2014 6:15PM EST
Comcast Time Warner Cable Merger Netflix

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So far most of the discussion about the Comcast-Time Warner Cable merger’s potential impact on Netflix has centered around how the newly combined Internet giant could throttle Netflix’s traffic. This isn’t too much of a concern in the short-term since Comcast is still bound by the network neutrality restrictions it accepted as part of its merger with NBC. On the other hand, there is a more immediate way that a Comcast-TWC merger could adversely affect Netflix’s business, according to a new report from Bloomberg.

Before the proposed merger with Comcast was announced, Time Warner Cable was in negotiations to bring Netflix’s app to its cable set-top box and make it much easier for TWC subscribers to access Netflix’s online streaming library. The proposed Comcast merger has now slowed these talks to a crawl, unnamed sources tell Bloomberg, because Comcast is much more interested in promoting its own X1 set-top box platform as an alternative.

Why is this important to Netflix’s future growth? As Bloomberg puts it, “A deal with Time Warner Cable would put pressure on other pay-TV providers to offer Netflix as well.” Now, however, it looks like Netflix’s plan to invade the cable market have been put on hold until the Comcast-TWC merger gets either approved or rejected.

Brad Reed
Brad Reed Staff Writer

Brad Reed has written about technology for over eight years at BGR.com and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.