Netflix to FCC: AT&T-DirecTV Deal Could Prevent ‘Cord-Cutting’

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Netflix does not want the Federal Communications Commission to approve AT&T’s proposed purchase of El Segundo-based satellite TV giant DirecTV unless changes are made to the merger.

Documents released by the FCC Monday report that Neflix officials met with commissioners on April 30 to discuss the merger. During the meeting, Netflix argued that merger could harm Netflix and other online video providers and that a combined AT&T and DirecTV could work “to prevent or delay cord-cutting” – that is, the shift of consumers from cable and satellite TV to streaming online programming.

While Netflix has voiced concerns to the FCC dating as far back as last fall, the company said it is not trying to block the merger.

“While we are participating in the government’s review, we are not opposing the merger,” Netflix spokeswoman Anne Marie Squeo said. “We’ve been highlighting concerns about AT&T’s broadband practices and the need for appropriate remedies since last September.”

Separately, DirecTV announced its first-quarter earnings Tuesday, reporting it had signed on more subscribers and brought in more revenue and profit. Still, the company’s net income of $730 million ($1.44 a share) fell below analysts’ expectations of earnings of $1.53 a share.

Results were announced before markets opened Tuesday. Shares closed the day at $88.88, down 1.7 percent.

DirecTV Executives did not discuss Netflix’s opposition to the merger during a conference call with investors Tuesday, and DirecTV spokesman Robert Mercer said the company had no comment.

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