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Should Directv Buy DISH?

Discussion in 'DIRECTV General Discussion' started by Curtis0620, Apr 29, 2011.

  1. Curtis0620

    Curtis0620 Hall Of Fame

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  2. Hoosier205

    Hoosier205 New Member

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    Well, Dish Network bought a dying company in Blockbuster...DirecTV could buy a dying company in Dish Network.
     
  3. Go Beavs

    Go Beavs Hall Of Fame

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    I hope not. Competition helps keep a lid on prices and I like having a choice in TV. If they were to merge I would have OTA or "DIRECTDish". That's not a good thing for rural subs like me.
     
  4. Steve

    Steve Well-Known Member

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    I see where Go Beavs is coming from, but I have to admit the article's points (below) in favor of a merger make good sense to me. Especially the point about programming rates. Seems to me the combined company would have lots of leverage in future negotiations with broadcasters.

    Maybe the regulators could somehow ensure folks with no cable alternatives couldn't be hosed on pricing? Just my .02.

    A merger, Moffett says, would provide substantial cost savings that would make satellite competitive against cable for “far longer than either company could sustain on its own.”

    • Satellite ground facilities could be consolidated. He notes that Dish alone spent $635 million on SG&A last year, or about 5% of revenue.
    • Retailer subsidies would likely decline from the current level of about 8% of revenues, since the two companies would not be bidding against each other for retailer support.
    • The two together would likely have lower programming rates; programming expense is as much as 40% of revenue, he notes.
      [*]R&D could be reduced.
    • Eventually, he adds, a combined company could operate fewer satellites.
    • Customer churn would likely be reduced, since you’d eliminate the problem of people jumping from DirecTV to Dish, or vive versa.
     
  5. tonyd79

    tonyd79 Hall Of Fame

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    I was against the Sirius XM merger but that hasn't really turned out too badly. My concern with a Dish/DirecTV merger would be that I really don't like how Dish did their technology. I have a limited view of the sky and eastern arcs would kill me but I *hate* the Dish DVRs.

    Sirius XM is basically running two systems independent of each other, only saving on studio time.

    How would programming rates drop? Aren't they based on subscribers not systems?
     
  6. Steve

    Steve Well-Known Member

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    My assumption is the more subscribers, the more leverage you bring to the table, because odds are the network can't afford to lose that many eyeballs.
     
  7. mdavej

    mdavej Hall Of Fame

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    I sure hope they never merge. I like the two companies they way they are. DirecTV and Dish serve different markets (DirecTV on the high end and Dish on the low end). The merged company would essentially be DirecTV with all Dish's subscribers, leaving 14 million low end customers out in the cold. I'm very grateful to have a low end option with all the content I want. I don't want to subsidize huge sports, streaming and 3D costs. I just want the basic content DirecTV has completely turned its back on.

    I think the author's logic is flawed as well. Like all costs, R&D would drop only because the cost is spread out over more subscribers. I see no reason for programming rates to drop either. They will continue their upward trend as ad revenue drops due to streaming, netflix, etc. I don't see reduced churn either. People switch providers mostly due to cost and content. Even a DirecTV satellite monopoly will continue to increase prices and offer today's limited content. So those who would have jumped between Dish and DirecTV will simply jump to cable or ditch pay TV altogether.
     
  8. dpeters11

    dpeters11 Hall Of Fame

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    If it meant getting the channels Dish has in HD on DirecTV (but not losing any of ours), I would consider it.

    But I know some Dish subscribers here that lost our local HD channels for a while when they were moved to a satellite they couldn't see, and Dish wouldn't allow dish replacements. I know at least one has to have two dishes for service.

    I wouldn't want that, or the Dish DVR. The in-laws had one and we couldn't even figure out how to setup a series recording. Considering I could figure it out on a Time Warner box, a DirecTivo and HR2x, and consider myself fairly adept, that was a bit surprising to me.
     
  9. rkr0923

    rkr0923 Guest

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    Sure hope not, Dish is the only place you can get Non-Sporting HD
     
  10. Shades228

    Shades228 DaBears

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    There are a lot of assumptions on some things though. The legal aspects of carriage agreements would get interesting for sure. I think at this point in the game it would be better for both consumer bases in the long run. In the short run though I could see it not having an impact on DISH customers.

    People much smarter than I am could talk about what the gain would be spectrum wise in the 99/103101/110/119 for capacity issues. Then there is is DIRECTV on MPEG 4 and DISH on mpeg 2 still. So really I think it would almost be a Sprint/Nextel type situation where technology really doesn't change for either company for a long time.
     
  11. mdavej

    mdavej Hall Of Fame

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    I fear losing all the HD Dish has if there were a merger. DirecTV's delusion of becoming Netflix will continue to have a serious negative impact on basic content for years to come, merger or not.

    Just like DirecTV, Dish moves subs off satellites they can no longer get for free. Just like DirecTV, the latest dishes can see multiple satellites. So 2 satellites for basic service is ancient history. Your friends in these situations should contact the Dish Internet Response Team in the forum here and get these issues taken care of.

    It takes 2 button presses to set up a series recording on Dish (Record, Done), just like on DirecTV (Record, Record). The only thing I had trouble with when I switched to Dish from DirecTV was I could no longer take a nap between button presses. The Dish DVR actually responded when I pressed a button.
     
  12. mdavej

    mdavej Hall Of Fame

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    I think you have that backwards. D* SD was all MPEG2 last time I checked. Dish eastern arc is 100% MPEG4 for both SD and HD. Western arc still has MPEG2 SD just like DirecTV does nationally.
     
  13. Steve

    Steve Well-Known Member

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    I'm curious. Why do you think that's more of an issue than Dish acquiring Blockbuster?
     
  14. scorpion43

    scorpion43 Duplicate User (Account Closed)

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    u wish :nono2:
     
  15. Shades228

    Shades228 DaBears

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    Actually I was just typing faster than I was thinking correctly. I meant to talk more about KA vs KU again.
     
  16. sigma1914

    sigma1914 Well-Known Member DBSTalk Club

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    I was going to ask that & you beat me to it. ;) It's the same thing. Charlie is trying the same plan it appears.
     
  17. wmb

    wmb Godfather

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    So, combining 2 currently incompatible satellite systems will reduce costs?

    What is the argument on why D* doesn't do away with MPEG2 SD delivery? It will cost too much to change out all of those D10 receivers. Now, you are going to force the swap out of the complete infrastructure of one of these two system? And this is going to reduce costs?
     
  18. sigma1914

    sigma1914 Well-Known Member DBSTalk Club

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    I don't think that'll be necessary. When/if AT&T/T-Mobil merge one group won't need new phones.
     
  19. SledgeHammer

    SledgeHammer Icon

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    If DirecTV doesn't do a Netflix like service where they reduce the pricing of the PPVs and up the "keep time" to be on par with Netflix they are complete and utter morons. People are really starting to notice that they can rent a movie on Netflix for like .10c a movie and keep it pretty much "forever" vs. $6 for a movie you can watch once and you can barely get up to take a whizz in the middle without it expiring :).

    Maybe thats why DTV did the survey? To find out why PPV revenue is down? LOL.
     
  20. SledgeHammer

    SledgeHammer Icon

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    Huh? Both are pretty much the same price and have similiar equipment. Only difference is sports nuts go for DTV.
     

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