Comcast Has Incentive To Foreclose OVD Competition, Netflix Says

Protecting its market power from erosion by online video is Comcast’s incentive to hold back content and throttle online video distributors (OVDs), said Netflix in an ex parte filing posted online in docket 14-57 Thursday. Though Comcast has argued it wouldn’t have incentive to foreclose OVDs, Netflix disagreed. Comcast’s theory that foreclosing OVDs isn’t desirable because it wouldn’t provide the cable giant with new market power relies on the assumption that Comcast doesn’t fear losing market power to OVDs, Netflix said. “OVD substitution of traditional Comcast services is both real and recognized by Comcast itself as potentially undermining its position in the market,” Netflix said. Comcast’s internal documents, released as part of the merger review, also show concern about the market threat of OVD, Netflix said in a heavily redacted section of the filing. Comcast didn't comment.