Netflix, after opposing Comcast's attempt to buy Time Warner Cable, is supporting a Charter/TWC merger because of a promise that the combined company will not charge large content providers and network operators for direct connections to its network.
Both Comcast and Time Warner Cable charge Netflix for network interconnection, also known as peering, which ensures that Netflix video doesn't hit congestion before entering the Internet service providers' networks. That's one of the main reasons Netflix opposed the Comcast/TWC merger, which was stopped by US regulators who said the deal could threaten online video providers that deliver content to the cable companies' customers.But Charter today promised settlement-free (i.e. unpaid) connections to companies like Netflix. The company's filing with the Federal Communications Commission says the new policy has gone into effect and promises to maintain it until the end of 2018 if the merger is approved.
Netflix immediately pledged its support for the merger. "Charter's new peering policy is a welcome and significant departure from the efforts of some ISPs to collect access tolls on the Internet," Netflix said in a filing to the FCC. "Netflix believes that this new policy and the commitment to apply it across the 'New Charter' footprint is a substantial public interest benefit and will support scaling the Internet to meet consumers' growing demand for online services and help foster continued innovation across the Internet ecosystem. Accordingly, Netflix supports the proposed Charter-Time Warner Cable transaction if it incorporates the merger conditions proposed by Charter."
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