AT&T-DirecTV merger: Netflix objects
The mega merger season is on in the United States. After the failure of Comcast to acquire Time Warner cable now AT & T is going after DirecTV acquisition. The deal is expected to cost $48 billion to US telecom giant. The both deals are supposed to influence media and broadcast landscape in the country. The AT & T- DirectTV merger has somehow managed to skip the critical examinations by the regulator.
The Comcast move went under the scanner of Justice Department and eventually failed to conclude. Together AT&T and DirecTV will merge the telecom provider with satellite broadcaster, the move which will make them largest distributor of television in the US. With 26 million subscribers its market share will be bigger than that of Comcast. The DirectTV official Michael White along with Randall Stephenson from AT&T informed about the merger plans at the Capitol Hill recently. Looks like this plan didn’t go well with online content provider Netflix.
In a filing to the Federal Communication Commission (FCC), the media regulator in the country, the company urged the government to refuse the AT&T-DirecTV transaction in its current form. As per the Netflix argument, the merger has the potential to harm the business of online video content providers like Netflix as the Mega Corporation will use its power and market dominance to create a monopoly. The customers’ access to Netflix has been already degraded by AT&T, the Netflix filings added. The broadband investment will also make AT&T a largest internet service provider in the country.