Netflix beats estimates: Hastings opposes Comcast/TWC deal (Update: Comcast responds)
Tom Paine
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Netflix today reported first quarter results that topped estimates, with over $1 billion in
revenue and 48 million subscribers worldwide.
Its net profit of $53 million, or 86 cents per share, also beat estimates.
Netflix also said it planned to raise prices for new subscribers in many countries by up to $2 per month, or 25%.
In his letter to shareholders, CEO Reed Hastings also revealed publicly his opposition to Comcast's proposal to buy and merge with Time Warner Cable.
The merger "would possess even more anticompetitive leverage to charge arbitrary interconnection tolls for access to their customers. For this reason, Netflix opposes this merger," Hastings wrote.
Earlier this year, Netflix reached an agreement with Comcast to pay for direct interconnect access to Comcast's network. Initial results indicate increased speeds for customers using Netflix with Comcast.
Update: Comcast responds
