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Print 19 comment(s) - last by Araxen.. on Jul 27 at 5:15 PM

If at first you don't succeed, try and try again until the FCC approves of a merger

About 6 years ago two of America's largest satellite media companies sought each other for a merger with no luck as the government would not approve a move to create a potential monopoly. 2006 has been quite a year in mergers and acquisitions and there has been a few hints on some more talks of DirecTV and EchoStar coming together from none other than Rupert Murdoch, chairman of the company that owns DirecTV. According to TVPredictions.com, Murdoch has stated that the federal government would most likely approve a DirecTV-EchoStar merger.

If it weren't for other events that hint at the two satellite/communications giants working together, Murdoch's statement would just be another meaningless statement. However, DirecTV and EchoStart have recently joined to bid on wireless airwaves in the United States and DirecTV's own CFO has stated that there are interests in a merger between the two.

EchoStar owns DirecTV's main competitor, DISH Network, which is why the initial merger was shot down in 2002. But since then there have been a number of new satellite TV offerings by various media companies to reduce a possible monopolistic practice. However, a joining of forces between DirecTV and EchoStar will mean that the only satellite media providers they will have to compete with are the smaller fish in the sea.


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Dish/Directv vs The Cable Co's
By Araxen on 7/26/2006 6:19:52 PM , Rating: 2
I wish this merger would go through. Dish and Directv compete directly with the Cable Co's and they are falling behind them. Dish or Directv can't offer video on-demand because of bandwidth limitations and if this merger would help them bring a video on-demand service I'm all for it.

Dish/Directv still need to stay competitive price wise or all their customers will just switch back to Cable. The Cable Co.'s would be very eager to sign up former Dish/Directv customers if their prices got too high.




RE: Dish/Directv vs The Cable Co's
By Cobra84 on 7/26/2006 7:56:38 PM , Rating: 2
quote:
Dish and Directv compete directly with the Cable Co's


Not necessarily, a lot of satellite subscribers can't get cable.


RE: Dish/Directv vs The Cable Co's
By AlexWade on 7/26/2006 8:45:08 PM , Rating: 1
And some cable subscribers can't get satellite due to covenances in subdivisions bigger than the Bible.


RE: Dish/Directv vs The Cable Co's
By drank12quartsstrohsbeer on 7/27/2006 10:07:08 AM , Rating: 2
Not necessairly. If your "service location" happens to be in the broadcast area of your favorite NFL team, you can get the local channels that carry your team's games. The "billing location" can be different.


By drank12quartsstrohsbeer on 7/27/2006 10:08:03 AM , Rating: 2
whoops, wrong spot. replied to the message below about the NFL


RE: Dish/Directv vs The Cable Co's
By Araxen on 7/27/2006 5:15:35 PM , Rating: 2
Directv couldn't afford to lose it's core customers if they started "gouging" their customers. They can't survive just on the people who live in BFE which isn't a big part of their base.

The idea they'll start gouging their customers if they merged with Dish is absurd.


RE: Dish/Directv vs The Cable Co's
By Aesir on 7/27/2006 12:18:51 AM , Rating: 2
Partially true, but satellite will always have its advantages (video quality, broader programming, more consistent charges, etc.) This merger would be bad for pretty much everyone except Dish NFL fans (and if you're an NFL fan who has Dish, you're an idiot in the first place), I'm pretty sure DirecTV would start gouging if Dish no longer existed.


RE: Dish/Directv vs The Cable Co's
By daveyd on 7/27/2006 1:07:32 PM , Rating: 2
If only the NFL would offer soemthing similar to the Sunday Ticket on cable


RE: Dish/Directv vs The Cable Co's
By zombiexl on 7/27/2006 10:06:34 AM , Rating: 2
quote:
I wish this merger would go through. Dish and Directv compete directly with the Cable Co's and they are falling behind them. Dish or Directv can't offer video on-demand because of bandwidth limitations and if this merger would help them bring a video on-demand service I'm all for it.


I think they would have to use a different distribution medium that sat for a decent VOD experience. Sat bandwidth is limited. Simply broadcasting static stations is easy, but when you start adding streams that can start at anytime things become much more difficult.


Cable the Real Competitor
By othercents on 7/26/2006 4:45:23 PM , Rating: 2
Really who is competing against who? Granted when you choose to use a Satellite service you have choices, but really the choice is between Satellite and Cable. It is all about entertainment choices. No one would have both Cable and Satellite, so they compete in the same market space. This would also be true when we get Broadband TV. It might be a monopoly in Satellite servicing, but if they are overprice it isn't like you don't have other choices.

Other




RE: Cable the Real Competitor
By zombiexl on 7/27/2006 10:03:05 AM , Rating: 2
Actually some people do have cable and sat. At one time I had DirecTV, VOOM (a short lived HD sat provider) and Comcast.

Since Comcast stepped up to the plate with better HD offerings and a DVR I cancelled DirecTV.

Voom was bought by Dish and I've been ripped off by dish before so I gave up on it.



RE: Cable the Real Competitor
By abhaxus on 7/27/2006 4:05:48 PM , Rating: 2
lots of people have sat and cable... in most markets the local channels are not available in HD on satellite from either provider, and even in my market (nashville) they only have fox, abc, cbs, and nbc. that leaves WB, PBS, and UPN without hd service (although at the moment only WB and PBS have any HD programming). so if you pay 15 bucks a month you get the locals from comcast, plus the dishHD package for all of the voom channels. and i can definitely make a case for having directv to get nfl sunday ticket in HD as well... of course, only for those that have lots of expendable income and lots of friends to come enjoy it with them :)


Doesn't sound good.
By Trisped on 7/26/2006 2:28:37 PM , Rating: 2
I hope it fales, otherwise it will be a monopoly on the sat market.




RE: Doesn't sound good.
By masher2 (blog) on 7/26/2006 3:18:57 PM , Rating: 3
Depends on how you define "the market". Is satellite TV its own market? Its product looks pretty much like cable TV to me, just with a slightly different distribution mechanism.


i hope not
By kattanna on 7/26/2006 1:21:00 PM , Rating: 2
i hope it doesnt go through..it would only serve to raise my dishnetwork bill im sure





RE: i hope not
By karrock on 7/26/2006 10:25:37 PM , Rating: 2
And why would it not be a monopoly anymore??? These two already put one major competitor out of business -- anyone remember Voom? There's no other real competition in the satellite business and putting these guys together would be like merging Intel and AMD.


Football
By colek42 on 7/26/2006 2:33:53 PM , Rating: 2
Does this mean NFL Sunday Ticket on Dish Network....Excellent




RE: Football
By OrSin on 7/26/2006 3:09:34 PM , Rating: 2
No it would mean you would have to switch over to Directv from your dish account.


Correction...
By ChristopherO on 7/26/2006 1:21:02 PM , Rating: 2
It wasn't a "late 90s" merger between DirecTV and Echostar. Rather it was announced in 2002. That's a pretty big difference.




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