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Directv CEO Says Possible Merger with Dish "Could Be Pro-Consumer"


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225 replies to this topic

#41 OFFLINE   tonyd79

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Posted 21 September 2012 - 07:53 PM

I call bull**** on this. CEO White is already in over his head. A deal like this would give him the perfect exit strategy and coverup his horrendous management skills.


Wow. Did he run over your dog or something?
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#42 OFFLINE   tonyd79

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Posted 21 September 2012 - 08:00 PM

I call bull**** on this. CEO White is already in over his head. A deal like this would give him the perfect exit strategy and coverup his horrendous management skills.


Wow. Did he run over your dog or something?
LR: HR34-700, H24-200, Fios DVR, BD350 Blu Ray, Roku Netflix Player, Chromecast, Sony 65w850 TV
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#43 OFFLINE   Hoosier205

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Posted 21 September 2012 - 08:01 PM

I call bull**** on this. CEO White is already in over his head. A deal like this would give him the perfect exit strategy and coverup his horrendous management skills.


I guess you haven't taken notice of their unprecedented success under his leadership.
DTV = Digital Television

#44 OFFLINE   davidatl14

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Posted 21 September 2012 - 08:03 PM

Wow. Did he run over your dog or something?



Must still be raw about White not falling on his knees and acknowledging the deity that is Larry Scot.
:lol:

On a more serious note in the Pac 12 network saga I do wish both sides could come to an agreement for the National feed at the very least.

Gonna miss a few of the games they have upcoming.

Always enjoyed watching PAC 12 gridiron late Saturday Nights/Early Sunday Morings during CFB season.
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#45 OFFLINE   Carl Spock

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Posted 22 September 2012 - 07:05 AM

The key is to contain costs, doesn't mean it will lower them. In other words, retard the rate of increases.

When you have 35 million customers you have that much more buying power than if you have 20 million. No different than a WalMart, etc. You can get better pricing.

Satelliteracer, you are exactly right. A monopoly does have the power to lower their own costs, or retard the rate of increase, as you point out.

As a customer, that's not the first cost I'm worried about. ;) It's the cost of the service to me that is primarily on my mind.

A monopoly has the ability to set prices. They are outside of the standard competition model. OPEC in the 1970s was the classic monopoly. They controlled the majority of the world's oil supply and they could set the price. We saw gas go from 29¢ a gallon to over $1.50 in just a few years.

A monopoly has the best of both worlds. They can lower their own costs because, as you point out, they have more leverage as a buyer, and they can raise the price to their customer since the customer has no where else to go.

This is why monopolies are so profitable.

The question is, would a merger of DirecTV and Dish be viewed as a monopoly? Could they pull off both of these tricks, lowering their costs and setting their price?

Certainly, as you say, they can do the first. They will have greater buying power. But will there still be competition, with other television choices for the consumer that will keep the price they can charge in check?

In many rural markets, this will certainly not be the case. There is no alternative for television beyond OTA, DirecTV or Dish, and in some of those markets, OTA doesn't work, either. In terms of geography, this could be half the country, if not more. A person more knowledgeable than me would have to determine how much of the population this would cover. My guess would be around 10%.

I am discounting the Internet for a source for rural cable television because for those folks, their Internet is probably still dial-up. If they could hook up a cable modem, they could also hook up cable TV. DSL doesn't work well when run miles from a substation.

The more populated parts of the country could have alternatives to a DirecTV/Dish merger, and more than they did in 2003. The idea that there is one cable system for each town yesterday's concept. Often the local phone company is offering TV. There can be other landline providers of television. This might keep a DirecTV/Dish merger from being viewed as a monopoly. We'll see. That's a call for folks a lot more swift than an old stereo salesman on an Internet board.
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#46 OFFLINE   Grafixguy

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Posted 22 September 2012 - 07:13 AM

It will be pro-consumer for those consumers who are DirecTV shareholders. :lol:

Longtime XM subs who lived through the Sirius "merger" can tell you how well that worked out for the consumer.


For the life of me I don't know why people keep bringing this up. Satellite radio is far different than TV. For starters there is tons of competition for most of what Sirius XM offers and more importantly is the fact that without that merger one or both of them would have gone out of business in short order anyway leaving us in the same situation.

And for what it's worth, subscribers are now able to subscribe to a limited number of stations for a reduced fee. I took advantage of that myself. I don't need Howard Stern, Playboy, Martha Stewart, etc. I just listen to music and a few news stations as well as weather and traffic.

And that ends my off topic rant.

Carry on.

#47 OFFLINE   Carl Spock

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Posted 22 September 2012 - 07:19 AM

I would argue it did work out for the customer. Without the Sirius-XM merger, likely neither company is around right now. If they are both gone, how does that benefit the consumer?

It's more than just dollars and cents, it's the bigger picture.

Sirius vs. XM was always a race to the bottom. Neither company was making money. The question was: who would run out of money first?

We found out the answer. It was XM.

I agree only one would survive. It doesn't make it a better deal for the consumer. I used to have 4 radios on my XM account. I gave them away for Christmas presents to nieces and nephews, with the agreement I'd continue to pay for their service as long as their grades stayed up. Now I have two radios on my account, one for my home and one for my car, and the money I pay to SiriusXM is about the same.

Yes, the merger kept the company alive and for that I'm grateful. I was a great deal for the listener but no, it was not a boon to the consumer.

Edited by Carl Spock, 22 September 2012 - 07:29 AM.
Thinking about it further, I never had more than 4 radios at one time on my XM account. Initially, I said 5.

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#48 OFFLINE   WebTraveler

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Posted 22 September 2012 - 08:00 AM

I guess you haven't taken notice of their unprecedented success under his leadership.


Yea he is pumping some short term profits at the expense of customers to drive stock price. It will all come crashing down. A net 52,000 loss of subscribers last quarter and profits are up....so you spend less on sign up promotions this quarter and get a profit. That strategy can work in the short term, but in the long term you cannot ignore this.

Being king of soda pop does not mean you will be king of tv

#49 OFFLINE   WebTraveler

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Posted 22 September 2012 - 08:01 AM

Wow. Did he run over your dog or something?


Want to post this same dribble a third time to make even a bigger point?

#50 OFFLINE   hdtvfan0001

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Posted 22 September 2012 - 08:04 AM

Oh yeah...this thread is about the idea and potential of a merger of DirecTV and Dish some day...it was getting hard to tell there for a bit...
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#51 OFFLINE   TXD16

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Posted 22 September 2012 - 08:24 AM

Much as they now do as individual companies, a post-merger DIRECDish® ;) will have to keep prices at a level that allows them to remain cost-competitive with cable and fiber in (sub)urban areas, and, hence, rural consumers will continue reap the benefits of that competition.

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#52 OFFLINE   Hoosier205

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Posted 22 September 2012 - 08:28 AM

Yea he is pumping some short term profits at the expense of customers to drive stock price. It will all come crashing down. A net 52,000 loss of subscribers last quarter and profits are up....so you spend less on sign up promotions this quarter and get a profit. That strategy can work in the short term, but in the long term you cannot ignore this.

Being king of soda pop does not mean you will be king of tv


What exactly has he done at the expense of customers? They've added content, features, and products. They completed 39 retrans deals in 2010, most if not all of 80 in 2011, and the numbers for 2012 will be very high as well.

Edited by Hoosier205, 22 September 2012 - 08:38 AM.

DTV = Digital Television

#53 OFFLINE   wilbur_the_goose

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Posted 22 September 2012 - 08:36 AM

My biggest fear is a lesson from the XM/Sirius "merger". XM was MANY times bigger than Sirius, but Sirius' management essentially ended XM forever. There's zero XM left now, and it's a real shame.

Therefore, my fear is that Echostar would rule the merged company - we'd lose our sports, our DVRs - all the stuff we like about D*, and it'd be replaced by a no NFLST, cheapened version of D* with crappy DVRs. But at least we'd get the Water Channel :(

#54 OFFLINE   Araxen

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Posted 22 September 2012 - 09:15 AM

As a guy who subscribed to XM before Sirius even existed, don't remind me. :nono2:

I'd have to go dig out old credit card statements to get the accurate figures but my memory says my satellite radio costs have more than doubled since I originally subscribed. Maybe they have tripled.

And for essentially the same programming although now I get Howard Stern. I've never liked Howard Stern.


To be somewhat fair Sirius/XM has to negotiate rates with the RIAA and the RIAA raked them over the coals last time. Sirius can't afford to be without music so they had no leverage. They had no choice but to raise rates.

Don't get me wrong I think the merger wasn't that great and I think Sirius/XM quality has suffered because of it.
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#55 OFFLINE   sigma1914

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Posted 22 September 2012 - 09:23 AM

Yea he is pumping some short term profits at the expense of customers to drive stock price. It will all come crashing down. A net 52,000 loss of subscribers last quarter and profits are up....so you spend less on sign up promotions this quarter and get a profit. That strategy can work in the short term, but in the long term you cannot ignore this.

Being king of soda pop does not mean you will be king of tv


DirecTV was the only company to have something like 16+ straight quarters with net growth. Every other big provider was losing quarter after quarter...

You've got to get past your personal anger over Pac12 Network and look at the big picture.
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#56 OFFLINE   mhking

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Posted 22 September 2012 - 10:08 AM

I lived through the Sirius-XM merger mess and would be first to say that the potential writing is on the wall here, but I would suggest that DirecTV look elsewhere beside Dish for merger bait. Think outside the box -- perhaps a Fios/Uverse element? How about going REALLY radical and merging with someone north of the border -- see if Bell or Rogers would spin off their satellite services into a truly North American service?

I'll admit it's pie in the sky, but radical things come from radical ideas....
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#57 ONLINE   Rich

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Posted 22 September 2012 - 10:15 AM

Agree.

There would have to be a number of significant technology and infrastructure changes to even make that work.


Something D* doesn't do well.

Rich

#58 OFFLINE   Hoosier205

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Posted 22 September 2012 - 10:18 AM

Something D* doesn't do well.

Rich


Really? I'd say just the opposite.
DTV = Digital Television

#59 OFFLINE   TheRatPatrol

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Posted 22 September 2012 - 10:30 AM

DIRECDish® ;)

DirecDishTV ;)

I lived through the Sirius-XM merger mess and would be first to say that the potential writing is on the wall here, but I would suggest that DirecTV look elsewhere beside Dish for merger bait. Think outside the box -- perhaps a Fios/Uverse element? How about going REALLY radical and merging with someone north of the border -- see if Bell or Rogers would spin off their satellite services into a truly North American service?

I'll admit it's pie in the sky, but radical things come from radical ideas....

I was kind of thinking this too, instead of the two satellite providers merging, what would happen if one of the major cable companies bought one of the satellite companys? Then that cable company could be "everywhere".

DirectCastTV? :eek2:

#60 OFFLINE   TBoneit

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Posted 22 September 2012 - 12:16 PM

I lived through the Sirius-XM merger mess and would be first to say that the potential writing is on the wall here, but I would suggest that DirecTV look elsewhere beside Dish for merger bait. Think outside the box -- perhaps a Fios/Uverse element? How about going REALLY radical and merging with someone north of the border -- see if Bell or Rogers would spin off their satellite services into a truly North American service?

I'll admit it's pie in the sky, but radical things come from radical ideas....


The Thing is that Dish has been acquiring lots of wireless bandwidth and Blockbuster, that may make them a more attractive merger partner, than just as a satellite TV provider.

Not to mention that adding the dish transponders on 110 & 119 (?) would give DirecTV a whole of of quick bandwidth with a relatively easy to make dish. Then add in the Dish satellites as in orbit spares and ...............

Put all foreign channels on the Dish Eastern Arc and in HD. Right Now I believe Dish is way ahead of DirecTV in foreign language channels. That seems to be a growth market.

Much easier to carry all channels in HD for all markets from one company with more transponders.

To me it looks like a merger could be a good deal.
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