AT&T has faced tough times, as Netflix has voiced concerns against its deal with DirecTV.
Netflix has shocked the American telecommunication firm, AT&T, by opposing its currently proposed merger with the cable services provider, DirecTV. The company has cautioned the Federal Communications Commission that the integration of the two companies would adversely affect the interests of online video distributors, as reported by Netflix news. This report indicates that the media firm has been threatened by the company’s intentions.
In a letter to the American regulator, the services provider has accused the telecom giant of restricting its online video services, which suggests that the media company believes the takeover would increase its difficulties. Netflix news today informed that AT&T has rejected the claims of its rival while maintaining a silent stance. The company believes that the regulatory body would not accept its competitor’s demand.
Netflix has also previously opposed such deals, as it participated in the broad coalition that battled against the integration of the American companies, Comcast Corporation and Time Warner Cable. It has also stated in the letter that AT&T would employ pricing methods and other strategies to increase the prices of its services. It believes that the merger would reduce its competitiveness, profit margins, and sales revenue.
Netflix breaking news affirmed that the consumer advocacy group, Public Knowledge, also supports the views of media organizations. The group believes that the merger would damage online video platforms. Experts stated the view that the shared views of both companies would affect the hearings of the commission.
An official of Netflix stated that the company does not oppose the merger itself but is concerned about the high-tech practices of the giant. She added that appropriate remedies could address those concerns. Her conversation indicates that the management of the company is only interested in protecting itself from the negative effects of the possible integration. Industry experts believe that both companies could jointly reduce the negative effects of the deal.
Company sources have revealed that some officials of the service provider met recently with more than 20 officials of the regulator and raised their concerns about the powers of the telecommunication giant. This information tells us that the management of the firm is trying its best to limit the powers of its competitor.
It is highly advisable for the officials of the FCC should carefully assess the perspectives of the interested parties and then make the decision in such high times to avoid controversies. Now it is yet to be seen that to what extent the media organization’s perspective is able to affect the policies of the AT&T and DirecTV.
