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DirecTV CEO: “Never Say Never” To A Merger Deal With Dish Network

Discussion in 'DIRECTV General Discussion' started by Athlon646464, Aug 3, 2013.

  1. Aug 3, 2013 #21 of 217
    dpeters11

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    According to this, 88% if urban households have access to cable broadband and 40% of rural. I'm sure there are areas with cable TV but not cable Internet.

    FCC defines broadband as 3Mbit down I believe. They wanted to raise it to 6.
     
  2. Aug 3, 2013 #22 of 217
    inkahauts

    inkahauts Well-Known Member

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    It would take ten years or more for these two companies to merger their internal resources and get all their customers onto one system to use. All of one companies customers would have to have their entire system replaced. This would not be easy.

    However, they could see cost savings in product developers and negotiating contracts. We would not see price decreases though. Just look at how many gas stations we have on corners today and where prices are today vs 20 years ago.
     
  3. Aug 3, 2013 #23 of 217
    pdxBeav

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    In my area I'm lucky with a choice of four providers. Going down to three would not be good for competition, especially when another one (Frontier FiOS) is trying to get out of the video delivery market.
     
  4. Aug 3, 2013 #24 of 217
    JoeTheDragon

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    gas prices have a lot of tax also the price of oil and other stuff drive the gas price.
     
  5. Aug 3, 2013 #25 of 217
    TBoneit

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    My TV Viewing choices
    OTA from NYC or Philadelphia
    Cable
    Fios
    DirecTv
    Dishnetwork

    Broadband Choices
    Cable
    Fios
    DSL
    Satellite Broadband


    Off the top of my head that is my list of options.
     
  6. Aug 4, 2013 #26 of 217
    sunfire9us

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    If DTV and Dish were to merge together, the new company would have more leverage when it comes to carriage deals. It's all about numbers. I think this could cause the content providers to quit being so greedy everytime.
     
  7. Aug 4, 2013 #27 of 217
    phrelin

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    IMHO a merger would be fought tooth-and-nail at the FCC and in Congress by the content providers and the cable companies. The combined customer base would represent a too powerful force in negotiations.

    That's what I would have said only a few years ago before Comcast took over NBCU. Now, who knows? Congress members aren't cheap, but that's a lot of money the two companies can leverage.
     
  8. Aug 4, 2013 #28 of 217
    Drucifer

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    Just how dd the XM Sirus merger work out for the consumer?
     
  9. Aug 4, 2013 #29 of 217
    inkahauts

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    I'd rather see DIRECTV buy Netflix and sprint. That would be good strategic moves long term.
     
  10. Aug 4, 2013 #30 of 217
    Mike Bertelson

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    They didn't raise their prices for three years, a promise they made when the merger was proposed. Since the 2008 merger they have raised the base price from $12.95 to $14.49 a month. A $1.45/mo increase in five years. Not bad.

    Although, I'm not sure it's a fair comparison with DIRECTV and Dish. SiriusXM has much more competition...most of which it free.

    Mike
     
  11. Aug 4, 2013 #31 of 217
    bobvick1983

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    Unless you live in a rural location. DirecTV or Dish is the only option where I live. No cable TV, much less cable broadband. We do have DSL from CenturyLink, when it works. So if you are in rural America, there is virtually no competition.
     
  12. Aug 4, 2013 #32 of 217
    James Long

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    SiriusXM took two companies that managed to convince the government that neither would survive without a merger and let them work together as one. At this point neither DirecTV nor DISH are approaching the point of not surviving ... it is an issue where both could make more money by combining operations and reducing competition - not one of survival.

    The FCC is still holding out for a new entrant in the satellite TV marketplace (something that could not have happened with Sirius and XM with the way the spectrum was assigned). A merger would probably be good for DirecTV and DISH - but it wouldn't be good for most of their subscribers.
     
  13. Aug 4, 2013 #33 of 217
    Laxguy

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    Winters,...
    Not doubting you, but how do you know this?
     
  14. Aug 4, 2013 #34 of 217
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    The FCC still has not permanently assigned DISH the final two transponder slots on 61.5. DISH can use them only under special temporary authority. The FCC's stated reason for not making a permanent assignment was to allow for a new entrant.

    What a new entrant will do with only two transponders at 61.5 is a mystery. SkyAngel operated their service off of two transponders (loaning the other six to DISH in exchange for use of the satellite). With MPEG4 someone could put up a small satellite service but with the cost of a satellite they would probably end up leasing transponders from DISH (unless they buy a used satellite).

    SkyAngel moved to IPTV (trading LOS issues for lack of broadband service issues) in order to survive. GloryStar remains in business as a FTA option for people wanting that niche of programming. The last small satellite company was Voom ... who could not pull off a successful service with 13 transponders (11 licensed, 2 temporary). I don't see a two transponder operation being feasible but the FCC holds out hope.
     
  15. Aug 4, 2013 #35 of 217
    Laxguy

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    Winters,...
    Thanks. An interesting situation!
     
  16. Aug 4, 2013 #36 of 217
    longrider

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    One thing no one has mentioned is that pay TV is a mature market, at least in the US. Anybody who wants pay TV has it, a new entrant would only take customers from other providers. What advantage is there to anybody in splitting the pie into smaller pieces, especially considering the very high capital costs of setting up a satellite service? Even phone companies have realized that the upgrade costs to their physical plant is not cost effective, Verizon has put FIOS expansion on hold and since the CenturyLink purchase I have not heard a word about Qwest's attempt to get into the TV business.

    On the competition/pricing issue I am not too concerned as the fact is the great majority of satellite customers are urban and satellite is just a choice, not necessity. As much as I dislike cable I know I would switch if it was 20 -30% cheaper and I doubt they are willing to give up that many customers
     
  17. Aug 4, 2013 #37 of 217
    Drucifer

    Drucifer Well-Known Member

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    And the choice to choose is gone.
     
  18. Aug 4, 2013 #38 of 217
    TheRatPatrol

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    CenturyLink has started advertising their new Prism TV here.
     
  19. Aug 4, 2013 #39 of 217
    raott

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    Instead of raising their prices, within a year of the merger they: began charging almost $3 a month for internet access, which was free pre-merger; raised a rates on multiple radios by about 30%; and added a "music royalty fee". Whether the base price was not changed is meaningless when the out-of-pocket cost post merger was substantially higher than pre-merger for many customers.
     
  20. Aug 4, 2013 #40 of 217
    Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Winters,...
    I doubt that even the majority of sat. subs are urban. Where does this info. come from?
     

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