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Netflix (Nasdaq: NFLX) and Time Warner Cable (NYSE: TWC) want to launch strike a deal over Open Connect, but Time Warner has an issued to sort out first.
According to Multichannel, Netflix might be too picky with what sort of broadcasting will be provided through the service. Cablevision (NYSE: CVC) and Netflix announced a deal last week where Cablevision subs who also subscribe to Netflix will be able to access “Super HD” and 3-D content.
Time Warner says Netflix is closing-off some content as it works to receive preferential treatment from ISPs. In a statement to Multichannel, Time Warner avered, “We believe it is wrong for Netflix to withhold any content formats from our subscribers and the subscribers of many other ISPs. Time Warner Cable’s network is more than capable of delivering this content to Netflix subscribers today.”
Open Connect is Netflix’s free service which allows ISPs to connect to its networks via the streaming providers content delivery network (CDN). Netflix is then able to cut-off third-party CDNs that deliver content to ISPs, saving the company money in the process.
Netflix is off 0.7 percent on the session while Time Warner is up 0.9 percent Thursday afternoon.
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