Tomahawk, WI 02/21/2014 (BasicsMedia) –  One would expect that with the $45 billion deal with Time Warner Cable on the table, Comcast Corporation (NASDAQ:CMCSA) would be preoccupied with nothing else. However, the latest reports indicate that the company is focused on something it considers equally important. The company believes that it needs to discourage Netflix, Inc. (NASDAQ:NFLX) so that the latter does not gain a proper foothold in the set-top boxes industry. Netflix has been agitating for a share of the spoils in the set-top boxes industry, and seems to be making headway. If CMCSA has its way, then Netflix Inc may find many of its paths blocked, and unable to gain a share of the set-top boxes market.

Wall Street analysts believe that they understand why Comcast Corporation (NASDAQ:CMCSA) would be uncomfortable and unprepared to allow Netflix to gain a share of the set-top boxes market. One needs to look at what Netflix, Inc. (NASDAQ:NFLX) stands to gain by entering this market, and compare that with what Comcast may lose. Comcast does not control the set-top boxes market in the US. Therefore, why would it be willing to stand in Netflix’s way and work hard to ensure that the latter is locked out? Comcast believes that Netflix intends to compete with it, and if allowed to operate on its set-top boxes, would be akin to helping a competitor kill your own business.

Is Netflix the main threat or challenger of Comcast Corporation (NASDAQ:CMCSA)? The answer to this is no. The reason for this answer is that Comcast has to grapple with a lot of competition brought on by providers of Internet or online content streaming. Netflix, Inc. (NASDAQ:NFLX) is just but one of the providers of such services, but more still do the same, and they stand to gain more than what Comcast hopes. Many cable providers, not only Comcast, seem to be troubled by the thought that streaming providers are about to enter a market they have dominated for such a long time. The cable providers have done everything they can to derail this arrival of streaming providers such as Netflix Inc.

One of the major problems that cable providers such as Comcast Corporation (NASDAQ:CMCSA) have with streaming providers such as Netflix is that customers will now get the chance to determine when and how to watch programs and movies of their choice. However, the deal that Comcast has with Time Warner, where it will buy the latter for around $45 billion, will help it to increase its market share as a cable provider. This will help Comcast to compensate for any loss it may incur as a result of Netflix gaining space in its set-top boxes. However, regulators still have to approve the deal between Comcast Corporation (NASDAQ:CMCSA) and Time Warner Cable Inc (NYSE:TWC), first, before it can proceed as planned.

In summary, Comcast Corporation (NASDAQ:CMCSA) has every right to be apprehensive with Netflix Inc. The latter threatens its business, but the decision to acquire Time Warner Cable Inc (NYSE:TWC) is timely and quite strategic, to say the least. However, Comcast cannot afford to tackle or focus on Netflix, Inc. (NASDAQ:NFLX) alone, since many streaming providers are already in the market, and any war with Netflix appears to be ill advised.

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