Cable providers cutting a deal to provide faster...

Netflix is getting a faster lane that I'm hurting anybody,” Esser said. The cable CEO emphasized that his company would never block customers from having access to Internet content. Blocking access would be “the worst decision” a company could make, Esser said. However, he distinguished allowing access for all from deals granting faster access to certain parties. “We do commercial arrangements in our industry every day,” Esser said. He also commented on the Comcast/Time Warner Cable deal and Charter’s involvement, saying that greater cooperation in the industry is good for all. Several industry observers told us that Cox had been interested in acquiring the 3.9 million divested subscribers from Comcast before the announcement of the deal sending them to Charter. Asked about whether the growth of Comcast and Charter might lead to higher or lower programming costs for Cox, Esser disagreed with the question. “I don’t think it’s a content discussion, it’s a platform discussion,” he said. Platforms and increased use of the cloud are the future of the cable industry, said Rob Lloyd, Cisco president-development and sales. Companies will increasingly update their systems through software updates rather than new hardware, and cloud technology will eventually replace much of the functionality of set-top boxes, he said. These new systems will test new features and be updated in much the same way smartphone apps are, Lloyd said. The cable industry will move to the cloud as the new “manufacturing plan,” Lloyd said.