Comcast Deal Impedes Progress Of Netflix Time Warner Cable Talks
Netflix has made no secret of the fact that it’s trying to get its service available on set-top boxes from cable providers in the U.S. as it has already begun doing in Europe.
It’s all about getting on as many devices as possible, giving consumers more ways of utilizing the massively popular streaming service (all cable deals so far still require customers to pay for Netflix separately).
It would appear that the big Comcast Time Warner Cable deal has thrown a wrench into talks between Netflix and Time Warner.
The discussions are unlikely to progress before Time Warner Cable (TWC)’s $45.2 billion acquisition by Comcast Corp. (CMCSA) is completed, said the people, who asked not to be named because the matter is private. Comcast, which isn’t as far along in its own talks with Netflix, is focused on increasing film downloads and rentals with its new X1 set-top box platform, they said.
Netflix brought up the subject of cable provider expansion in a letter to shareholders last month. The letter from CEO Reed Hastings and CFO David Wells had this to say:
During the quarter, we also completed the roll out of the Netflix streaming application into Virgin
Media’s set-top box for UK members and have been quite pleased with the implementation and
reception. We followed up with two similar platforms based on the same technology, Denmark’s Waoo! which went live in Q4, and Com Hem in Sweden, which was just recently launched. We anticipate rolling out our first domestic MVPD integrations soon with some of the smaller MVPDs.
The company also used the opportunity to explain that they’d “vigorously protest” any ISPs taking advantage of the recent Verizon net neutrality ruling.
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