The support comes not without any reason; Netflix’s proclivity for the new deal is mainly due to the possibilities of Interconnection which relates a physical link and of a network from a carrier which might be the merged Charter and TWC, and a content provider where Netflix might see itself.
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Netflix, one of the highest profile corporate opponents of Comcast’s proposed merger with, has thrown its support behind Charter Communications’ acquisition of TW Cable. Netflix filed a separate document that said it’s committed to supporting Charter’s deal for Time Warner Cable announced in May, given this commitment by Charter.
Time Warner Cable (NYSE:TWC) last posted its quarterly earnings results on Thursday, April 30th. With settlement-free “peering”, neither Charter nor Netflix would pay each other.
Net Neutrality Charter shares climbed 2.3 per cent to $181.06 at 1:40 p.m.in New York. Though Netflix grudgingly struck a “paid” interconnection deal with Comcast early past year, it lashed out publicly against the practice of charging and made the deal a cornerstone of its opposition to Comcast’s merger with TWC. Approximately 45 percent of Time Warner Cable Internet customers nationwide will have access to TWC Maxx Internet speeds by the end of this year, and more than 50 percent of video subscribers will have access to all-digital video once the transformation in these first twelve service areas is complete. Charter has been holding discussions with Netflix to work out a policy that the company could get behind, according to a Charter spokesman.
Charter Communications’ bid comes as the company plans to expand the quality and reach of its broadband Internet service.
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“Netflix’s long-standing support for an open interconnection policy is created to ensure that consumers get the online content they want at the broadband speeds they pay for”. Netflix has traditionally used a third company to make this connection. Critics say these payments are a kind of extortion on the cable operators’ part. In a new filing with the FCC, Charter declares the company will avoid screwing up the Internet for a whopping total of three years, and provide free interconnection to any large content or transit provider that adheres to certain traffic load and point of presence (POP) criteria.
