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Comcast: Netflix Has More Viewers Than Us, So Our Merger is Fine
by Karl Bode 08:07AM Thursday May 01 2014
To get their merger approved, Comcast has brushed aside anti-competitive concerns by claiming that effectively everybody from Hulu (which Comcast owns) to Google Fiber (whose footprint is too small to provide meaningful competition) will provide a competitive counter-balance and keep Comcast in check. While invalid, Comcast doesn't appear to want to stop using apples to orange comparisons to try and make that same point. Their latest argument is that because Netflix technically has more video customers than Comcast, the Comcast deal is sure to be just fine:
quote:
Comcast continues to paint Netflix as a competitor, as the cable giant keeps trying to make the case that it needs to swallow Time Warner Cable to have a presence on a national scale – and compete with what it portrays as surging digital-video rivals. Comcast chairman-CEO Brian Roberts, speaking on a panel at the Cable Show, said that with the TW Cable acquisition and subsequent spinoff of systems to Charter Communications, Comcast will add a net 7 million customers. That would give Comcast about 30 million video subscribers — and Roberts noted that Netflix now has more than 35 million U.S. subscribers.
Except Netflix's rotating and inconsistent crop of older content isn't really a direct competitor to cable because broadcast and cable work tirelessly to ensure it can't be via usage caps and licensing restrictions.

view:
topics flat nest 

Kilroy
Premium,MVM
join:2002-11-21
Saint Paul, MN

3 recommendations

Pay no attention to the man behind the curtain

While conveniently failing to mention that these services require Comcast pipes to reach Comcast users and that they have already started extorting money from them by failing to maintain sufficient interconnects or joining Open Connect.

Also known as listen to what I'm saying, don't watch what I'm doing.
--
"Progress isn't made by early risers. It's made by lazy men trying to find easier ways to do something." - Robert A. Heinlein

dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI
kudos:1
Reviews:
·Comcast

1 recommendation

It doesn't have to make real sense

They aren't really trying to convince regulators as money seems to do that just fine. They are trying to give regulators plausible arguments to use on the public and other watchdog agencies so they keep their jobs.
The reasoning only need the right level of truthiness.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16
rfrooney

join:2006-02-26
Antioch, TN

Comcast keeps spewing more bovine skatology

and the regulators keep drinking the kool-aid.

This merger is bad for everyone involved except Comcast and the only ones that see it are the same ones the FCC ignores.

RWSI

join:2012-11-27
Albuquerque, NM

Cable vs online provider

Cable is only a regional provider. Netflix covers where ever the net exists. One thing about Netflix Hollywood controls what you have access to.

Competition I don't think so, and by the way Comcast go away your bugging me!
jjeffeory

join:2002-12-04
USA

Re: Cable vs online provider

All regional cable companies include a core set of channels; every cable company that I've seen, since the inception of cable systems, have ABC, NBC, CBS, PBS and several other channels. Even the most basic and terrible service anywhere in America can be assured to have these channels and probably C-Span, CNN. So anywhere cable is available, you can just lump them together. ...and Hollywood controls whatever we have access to anyway, other than the local news... Well, Comcast and Disney also control what we have access to as well. Too much consolidation on TV and Movies in my opinion.

newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD
kudos:1
Reviews:
·DIRECTV
·Comcast

1 recommendation

Keep hammering away at them

quote:
A majority of Americans are skeptical about the proposed merger of Comcast Corp and Time Warner Cable Inc, and they are not convinced the U.S. government is doing enough to prevent monopolies generally, according to a Reuters/Ipsos online poll ...
»www.huffingtonpost.com/2014/03/2···738.html

Say NO to the Comcast / Time Warner Cable Mafia Merger
»bit.ly/1gB0ULh

Reclassify Internet broadband providers as common carriers
»1.usa.gov/1ffW35d

We the People Net Neutrality Petition
»1.usa.gov/1mHh7S0

CordCutter

@66.249.88.x

Netflix and the much hyped cord cutters are competitors

Comcast is correct. Netflix, leading the charge of the cord cutters, is a direct competitor to Comcast's Video TV business. Everyone keeps saying that is the new reality.
Skippy25

join:2000-09-13
Hazelwood, MO

Re: Netflix and the much hyped cord cutters are competitors

Well, if Netflix had both content and a network to deliver their "competitive product" on then I may agree.

However, Netflix relies on ISP's to deliver their content being they are internet based. Therefore Comcast and TWC are both gatekeepers of that content, not competitors to it. In addition, Comcast owns some of the very content that Netflix offers or would like to offer. Thus again they are a gatekeeper of it, not a competitor.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

4 words we should all remember

"To big to fail"
Do we want to add yet another company to the list of companies that will need tax payer money if they get into trouble?
Bad enough wall street, the banks, the auto industry required a bail out. And now look at how those industries are back to screwing their customers yet again.

There is just 1 thing Comcast could do to change my stance on the merger. That 1 thing is simple. Give up the last mile blockade. Allow competitors to use the cable they [Comcast] ran. And get all the Cable companies to open up the last mile. So there can be true competition in that market.
Until then, no merger.
--
Is a person a failure for doing nothing? Or is he a failure for trying, and not succeeding at what he is attempting to do? What did you fail at today?.
firedrakes

join:2009-01-29
Arcadia, FL

Re: 4 words we should all remember

but we own the biggest road in the usa. for netflix. so we will screw you that way now

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: 4 words we should all remember

yep. Plus the convenience of usage meters. So you can keep your bill low.


Simba7
I Void Warranties

join:2003-03-24
Billings, MT
..except we're having multiple companies that are fitting into that class. This creates a massive problem.

Snakeoil
Ignore Button. The coward's feature.
Premium
join:2000-08-05
Mentor, OH
kudos:1

Re: 4 words we should all remember

yep. Crappy service, high prices, no competition, etc, etc.
jjeffeory

join:2002-12-04
USA

1 edit

Netflix isn't an ISP.

Netflix isn't a competitor, they don't provide broadband, and they don't provide all the network channels. That's like saying ABC is a competitor to Comcast, which isn't really true. Disney, who owns ABC, may be a competitor to Comcast on the content producer side, but certainly not the distribution side, and Netflix would be more like "1" channel than dozens of channels that makes up Comcast's content producing side of their business. What we have here is a content source of many channels/content distributor trying to say that a single content source is competition and should be considered as a valid reason to allow a merger between content source of many channels/content distributor (Comcast) and content distributor (TWC).

Really distorted logic here.