Time Warner Cable Inc (NYSE:TWC) and Netflix, Inc. (NASDAQ:NFLX) may be considering a partnership to stream content, but there’s a big disagreement right now hampering negotiations. Netflix requires cable companies to sign up for its free Open Connect service, in order for their customers to receive access to higher quality content, but Time Warner Cable has a big problem with that.
A Time Warner Cable Inc (NYSE:TWC) spokesperson told Multichannel on Wednesday that Netflix, Inc. (NASDAQ:NFLX) only delivers its high quality HD, Super HD, and 3D content to customers who are with cable providers that have signed up for Open Connect. The spokesperson told the publication that they don’t believe it’s right for Netflix to withhold any content from Time Warner Cable’s subscribers.
Gates Capital Management's ECF Value Funds have a fantastic track record. The funds (full-name Excess Cash Flow Value Funds), which invest in an event-driven equity and credit strategy, have produced a 12.6% annualised return over the past 26 years. The funds added 7.7% overall in the second half of 2022, outperforming the 3.4% return for Read More
Open Connect is a free service offered by Netflix, Inc. (NASDAQ:NFLX), which makes it possible for internet service providers to connect directly to the streaming provider’s content delivery network. This helps eliminate third party networks, saving Netflix money and, the company claims, enhances the quality of the content they deliver.
Numerous other cable service providers have signed up for Open Connect, such as Google Fiber, Cablevision Systems Corporation (NYSE:CVC) and other companies. However, Time Warner Cable Inc (NYSE:TWC) refuses to do so. Nonetheless, Multichannel reports that they are still trying to reach a partnership deal. Netflix has not responded to inquiries for comment on the negotiations.
Netflix has made a number of other deals recently, like the deal it made for exclusive content from The Walt Disney Company (NYSE:DIS) last month and the deals it made this month with Warner Bros. and Turner Broadcasting.