Cable TV Providers Rebuff Netflix Plans

The cable TV providers, Time Warner Cable and Comcast have merged. And Netflix which was looking forward to carrying out its plans of expansion by piggyback riding on TWC is out on a limb. Its efforts have been rebuffed by Comcast which doesn’t want to lose a huge chunk of its business to Netflix.

Netflix has been truly left in a lurch by cable TV providers. All its beautiful dreams have become nightmares thanks to the joint contract signed by TWC and Comcast. The two have become one and now there is no turning back. 

The whole process, that Netflix was looking forward to like an eager beaver, has been frozen. And it appears to be no one’s fault. The $45.2 billion acquisition of TWC by Comcast will lead to a mighty shuffle of assets and resources by the two cable TV providers. 

While the talks have been postponed, they will resume once Comcast and TWC have settled down and learnt their ABCs. But the bone of contention seems to be Comcast’s own goals which are in conflict with Netflix. It wants to try out rentals and downloadable movies on its brand new X1 set-top box platform. 

Comcast is in no hurry to allow Netflix to siphon off all its profits via its own initiatives. That is why Netflix is weighing its options. It may, if it wants to, turn to other sources that will benefit it in the long run. There have been several discussion rounds with prospective clients.

Netflix is already being utilized on Roku, smart TVs and Apple TVs. And while the execs at Netflix reiterate the fact that they are in it for the experience and not for the money, the reality of the situation is very different. Who wouldn’t mind a little extra cash? 

Comcast meanwhile is busy consolidating its own products and services. Its army of engineers is ever-ready to work on the X1 set-top box. Comcast wants to outdo Netflix and it just might succeed in its endeavors.

Source: Bloomberg