Why Netflix Is Speaking Out Against Comcast-TWC

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May 8 (Bloomberg) -- Bloomberg's Edmund Lee and Jon Erlichman discuss what a potential Comcast-Time Warner Cable deal could mean for your favorite websites. They speak with Emily Chang and Cory Johnson on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

York and we have jon erlichman in l.a.. editor-at-large cory johnson.

Edmonds, what is the impact?

We know comcast is largely a video company.

They are selling video service across the country.

They're more significantly broadcast -- broadband dividers.

Net book -- netflix, google, facebook.

Those companies have a relationship to comcast that is up in question.

They are trying to charge these guys for better access to these broadband.

This could have implications for big companies out of silicon valley.

John, can you explain to me -- i cannot understand how disney tried to get an increase in with a patent has yet and how that might change espn.

Crack i do not think it will change.

Bob iger is the ceo of disney.

When the deal was first announced and we asked how it would affect them, he said it would not.

We are feeling pretty good about the stuff that we have on offer.

It is led by programming on espn.

Disney is in a good spot.

The question is about those less valuable channels.

That is where the different media companies -- i don't know what you want to say.

Some low level cooking channel that nobody wanted to walk in the first days -- place, would they keep it the various cable packages?

The high end programming will continue to command the type prices.

So much so that the cable bills may continue to climb.

One of the things we talked about all the time, why netflix is so popular, people are frustrated with paying their cable bills.

The broadcasters are pushing these prices on the companies.

We have the best content.

We have more leverage.

The parent companies of disney, 20th century fox, they have not spoken out at all.

Then you have netflix, coming out very much against this deal.

They are the only one who have a payment deal with comcast.

They say that contact is already dominant and not -- enough.

-- edmonds, why go out on a limb?

That is a good way.

Disney any other programmers have said that it will be ok.

It could be like netflix complaining about the deal.

If you take a step back, disney and viacom get paid by comcast.

Netflix page comcast.

Of course they will complain about it.

Companies like disney and fox will like it because they're getting paid.

Then the perspective, to take a step back.

It is important concepts you have.

-- context to have.

At the same time, netflix brings up a good point.

You have a company that is only 30% connected to subscribers.

There are higher rates going into the future.

I wonder if that is about the old business.

You do not criticize the people you do business with the public.

Netflix is a newer company.

They are brave enough to do a deal with comcast and have favorite access, but also say that they do not want these in the future.

I would put netflix in the pocket.

They played this game very well.

When they decided to make a real push in hollywood, they didn't the hollywood way.

They were very friendly with the various content creators.

You have seen their willingness to pay a lot of money.

They did not treat themselves as outsiders.

Netflix is speaking out in part because they're savvy and they cut a deal with comcast.

They are hedged in this story.

This is about the next netflix.

The companies we have not explored that could potentially change the tv or media viewing experience.

It could get started up and silicon valley or here in los angeles.

But then it cannot afford to be in this game.

You have to pay to play.

Edmonds, you say that this deal -- what happens in reality?

With companies like netflix and other silicon valley companies that have made statements about the proposed rules for a faster lane for the internet at companies like comcast in charge content providers for, that is the thing that regulators are going to want to take a closer look at.

They will look at whether they can approve this merger.

If some start up can approve or persuade the sec and other regulators, if you allow this merger to go through, they will have more power.

The fcc is proposing a faster lane.

The startup will lose out.

The next netflix could be hurt.

They will not be able to compete is fairly.

That will be a key analysis in

This text has been automatically generated. It may not be 100% accurate.


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