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


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225 replies to this topic

#161 OFFLINE   James Long

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Posted 28 September 2012 - 04:50 PM

Just because this is what Mr. White is hoping for does not mean it will happen.

I'm not sure that Mr White is hoping for a merger or even wants one to happen. I'm just seeing his comments as stating that such a merger may not be a bad idea ... instead of a complete rejection of the concept.

You are right about the complexity of the deal and the differences between the two companies.

DirecTV has remained a satellite TV company with limited movements into other markets. Over the years DirecTV have been owned by companies with other interests.

DISH started as Echostar until that part of the business was separated, but the ownership of the two companies remains primarily the same and the primary ownership of the companies has remained the same since before DISH was born. Over the years DISH has purchased other companies and brought them under the DISH/Echostar umbrellas.

Both companies have purchased other DBS properties ... both "live" companies (eg: DirecTV purchase of USSB) and unbuilt licenses. Both have used such purchases to grow their DBS offerings. The merger of DirecTV and DISH would be the biggest of those deals ever.



One thing to keep in mind ... DirecTV's best quarter so far has been the addition of 1.28 million (gross) customers 3Q 2011. If DirecTV abruptly ended DISH service they would be unable to handle the influx of "new" customers. In addition, with subscriber acquisition costs over $800 per customer it would be cost prohibitive to replace all the equipment. Both company's systems would need to remain in business for several years for a smooth transition.

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#162 OFFLINE   Dude111

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Posted 02 October 2012 - 11:08 PM

It's monopolies that maximize profit.

Yup prices would most likely sky rocket!! :(

#163 OFFLINE   Carolina

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Posted 06 October 2012 - 11:10 PM

Oh joy this reminds me too much of the Sirius/XM merger that was a mess. Two companies that were one company, but not really because their technologies were not immediately compatible. Prices did go up and on top of it all Sirius/XM is not as good as either Sirius or XM were when they were separate. Oh please don't let this happen :angel:

#164 OFFLINE   Bambler

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Posted 06 October 2012 - 11:14 PM

Bad idea. Regardless of how you may think DirecTV is "pro-consumer," explain that the next time they blackout and don't roll back rates.

The less choices available is always a bad thing and I think the FCC will agree in regards to Dish and DirecTV.

#165 OFFLINE   Hoosier205

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Posted 06 October 2012 - 11:23 PM

Bad idea. Regardless of how you may think DirecTV is "pro-consumer," explain that the next time they blackout and don't roll back rates.

The less choices available is always a bad thing and I think the FCC will agree in regards to Dish and DirecTV.


Blackout what?
DTV = Digital Television

#166 OFFLINE   Bambler

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Posted 06 October 2012 - 11:27 PM

Blackout what?


I'm speaking in future-tense and my thoughts carry good weight based on what we've seen so far regarding DirecTV's negotiating stance. Re-read.

#167 OFFLINE   Hoosier205

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Posted 06 October 2012 - 11:35 PM

I'm speaking in future-tense and my thoughts carry good weight based on what we've seen so far regarding DirecTV's negotiating stance. Re-read.


They completed 39 retrans deals in 2010, around 80 in 2011, and a ton in 2012 so far. There have been very few "blackouts" however. So based on what exactly?
DTV = Digital Television

#168 OFFLINE   Bambler

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Posted 06 October 2012 - 11:40 PM

They completed 39 retrans deals in 2010, around 80 in 2011, and a ton in 2012 so far. There have been very few "blackouts" however. So based on what exactly?


Viacom? Who is to say the next big one will be easier as DirecTV tries to leverage their declining subscriber numbers against another? I'm just guessing, but you don't know the future, either.

#169 OFFLINE   Hoosier205

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Posted 06 October 2012 - 11:44 PM

Viacom? Who is to say the next big one will be easier as DirecTV tries to leverage their declining subscriber numbers against another? I'm just guessing, but you don't know the future, either.


Viacom? That's one "blackout" compared to 119 successful non-blackout retrans deals from 2010-2011 and a large number of them already in 2012. Still trying to understand why you think it is bad that they are firm in negotiating deals in order to minimize those rate increases.
DTV = Digital Television

#170 OFFLINE   Bambler

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Posted 06 October 2012 - 11:47 PM

Viacom? That's one "blackout" compared to 119 successful non-blackout retrans deals from 2010-2011 and a large number of them already in 2012.


Okay? So maybe those other channels didn't have as much pull and were begging DirecTV to carry. I have no idea? But the line has been drawn in regards to leveraging power. The content providers and content distributors knows where it's at...who blinks first?

#171 OFFLINE   TXD16

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Posted 06 October 2012 - 11:56 PM

Oh joy this reminds me too much of the Sirius/XM merger that was a mess. Two companies that were one company, but not really because their technologies were not immediately compatible. Prices did go up and on top of it all Sirius/XM is not as good as either Sirius or XM were when they were separate. Oh please don't let this happen :angel:


As has been mentioned, that's an apples-to-oranges comparison as both Sirius and XM were bleeding cash and would both be out of business if the merger hadn't been approved. Such is not the case for DIRECTV and Dish.

Personally, I believe that with the existing competition from cable, fiber, and IP, I would love to see what a single merged, leaner satellite offering could offer, both in quality and quantity.

"We are fast approaching the stage of the ultimate inversion: the stage where the government is free to do anything it pleases, while the citizens may act only by permission; which is the stage of the darkest periods of human history, the stage of rule by brute force." - Ayn Rand


#172 OFFLINE   Bambler

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Posted 06 October 2012 - 11:59 PM

As has been mentioned, that's an apples-to-oranges comparison as both Sirius and XM were bleeding cash and would both be out of business if the merger hadn't been approved. Such is not the case for DIRECTV and Dish.

Personally, I believe that with the existing competition from cable, fiber, and IP, I would love to see what a single merged, leaner satellite offering could offer, both in quality and quantity.


As enticing as that may sound, I don't agree. Whenever "choices" decline, the consumer loses in the long-run and I think the FCC, no matter how you may think of them, would agree when it comes to something like this.

Satellite radio doesn't count in the eye of the FCC.

#173 OFFLINE   MysteryMan

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Posted 07 October 2012 - 05:24 AM

As has been mentioned, that's an apples-to-oranges comparison as both Sirius and XM were bleeding cash and would both be out of business if the merger hadn't been approved. Such is not the case for DIRECTV and Dish.

Personally, I believe that with the existing competition from cable, fiber, and IP, I would love to see what a single merged, leaner satellite offering could offer, both in quality and quantity.


What that would offer is a monopoly. We're the only satellite service provider. Take what we provide or use a ota antenna or the cable service in your area.

DirecTV customer since 1995.


#174 OFFLINE   mreposter

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Posted 07 October 2012 - 11:50 AM

It would only be a monopoly in rural areas without cable. A combined Direct-Dish would be a national carrier. It would have to compete with every cable system in the country.

Past regulations have made it clear that the two companies have to offer uniform pricing nationally, so they couldn't get away with charging higher rates or additional fees to rural customers where they have monopoly power. So competition with Time Warner, Comcast and other other biggies in the urban/suburban areas will keep rates within reason.

My own take is that this would be a hugely expensive merger over 3-5 years to combine the technology, the set top boxes and software, etc all while grappling with the increasing impact of the internet and video on demand. If so, it would take a long time for this thing to pay off with higher profits.
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#175 OFFLINE   mrro82

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Posted 07 October 2012 - 12:12 PM

Personally, I view it like this. What if Sprint had been bought by Verizon or AT&T and right now there was only AT&T and Verizon? Imagine those 2 merged. How much better off would you be then?

#176 OFFLINE   Hoosier205

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Posted 07 October 2012 - 12:16 PM

A DirecTV run merged company would make up for all of the disadvantages of Dish. They would still face heavy competition on all fronts from other providers.

#177 OFFLINE   Mike Greer

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Posted 08 October 2012 - 12:33 PM

I think if DirecTV and Dish did merge rather than getting the best of both we would get the worst of both. That way they could maximize profits without having to worry about giving up subs to the other....

Just think, we could look forward to all HD being HD-Lite and the HD DVRs will all stop responding to the remote. Sounds like a win-win for stock holders and a lose-lose for consumers.

I certainly hope a merger is NEVER allowed to happen!

#178 OFFLINE   WebTraveler

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Posted 08 October 2012 - 03:36 PM

A DirecTV run merged company would make up for all of the disadvantages of Dish. They would still face heavy competition on all fronts from other providers.


who says it would be a Direct run company? It won't happen anyway, Dish has diversified itself to all sorts of other activities. Direct has all its eggs in one basket.

#179 OFFLINE   tonyd79

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Posted 08 October 2012 - 04:43 PM

who says it would be a Direct run company? It won't happen anyway, Dish has diversified itself to all sorts of other activities. Direct has all its eggs in one basket.


Yeah. Dish owns all those blockbuster stores.
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#180 OFFLINE   James Long

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Posted 08 October 2012 - 05:14 PM

Yeah. Dish owns all those blockbuster stores.

And Sling and a lot of licenses for providing Internet/data services.




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