Netflix, Inc. (NASDAQ:NFLX) opposed the Comcast Corporation (NYSE:CMCSA) bid to take over Time Warner Cable Inc (NYSE:TWC), claiming that, after the deal, Comcast would have access to high internet speed in the United States, which is an undue advantage and “anti-competitive leverage.” Comcast plans to acquire Time Warner Cable for $45 billion.
Netflix also targets AT&T
Netflix, Inc. (NASDAQ:NFLX) is the first media company to stand against the merger, which would create a company with the subscriber base of around 30 million across the country.
Reed Hastings, the CEO of Netflix, contends that the arrangement, once supported by Netflix, Inc. (NASDAQ:NFLX) is against the spirit of so-called net neutrality. According to the Net Neutrality principle, internet service providers cannot support one type of content over another.
Comcast Corporation (NYSE:CMCSA), however, differs from Netflix, Inc. (NASDAQ:NFLX) over the issue saying that the streaming company showed interest and paid for a more direct connection to the service provider’s network.
“Netflix is free to express its opinions,” Comcast Corporation (NYSE:CMCSA) wrote, in a blog. “But they should be factually based.”
Netflix, Inc. (NASDAQ:NFLX) did not stop there and targeted another prominent internet service company, AT&T, saying that its U-verse high speed service was not as fast as the previous DSL connections. The company asked AT&T to deliver higher speed connections to dispel customer complaints.
Service fee raised for other geographies
The online video streaming company confirmed that is increasing the price for its service in the United States by $1 to $2 per month for new members, about which it indicated earlier this year. Netflix decided to expand its price rise to other geographies after such an increase did not affect the subscribers in Ireland. Those who are already subscribing the service of Netflix will be charged the same price for a “generous time period.” With the increase in the price, Netflix, Inc. (NASDAQ:NFLX) will be able to deliver more content by paying for it, which is the core selling point of the company.
The video streaming service posted strong first quarter results, which were above the expectations of the market. In after hours of trading, Netflix, Inc. (NASDAQ:NFLX) shares were up 6.6%, to $371.33. In last 12 months, shares have gained 113%.