DirecTV-EchoStar Merger Idea Raised, Again
July 26, 2006 12:34 PM
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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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Cable the Real Competitor
7/26/2006 4:45:23 PM
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.
RE: Cable the Real Competitor
7/27/2006 10:03:05 AM
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
7/27/2006 4:05:48 PM
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 :)
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