Merger Muscle Might Help Networks Resist Netflix

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With the sale of Cablevision Systems and the acquisition of Time Warner Cable by Charter Communications getting closer to completion, the chatter is getting louder that programmers will have to merge to maintain leverage against consolidated distributors. In a report, Michael Nathanson of MoffettNathanson Research points to another adversary stronger programmers would be better able to stand up to: Netflix.

“Cable networks consolidation could also lead to upside if the larger portfolios take a more thoughtful longer view on selling their content to subscription video on demand services,” Nathanson said. Smaller companies seem more likely to take the short-term earnings -- and resulting executive compensation -- that dealing with Netflix produces.


Merger Muscle Might Help Networks Resist Netflix