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Liberty’s John Malone Urges Ergen to Merge Dish With DirecTV

Discussion in 'General DISH™ Discussion' started by Athlon646464, Jul 11, 2013.

  1. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Winters,...
    Of course Walmart can buy cheaper and sell cheaper based on huge volumes, but that's not quite parallel to the two sat companies.

    I doubt the FTC or the FCC would allow a merger here, but you never know.

    I much prefer the competition: a monopoly tends to let prices float- one way, and that is up.
     
  2. joshjr

    joshjr Hall Of Fame

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    The point was one company with more customers would have an easier time telling Disney we wont pay those prices. If Disney would lose more customers by the merge it would lower their ability to strong arm DirecTV or Dish if they were merged. That is not much different then Wal-Mart. How many companies out there can afford to lose a huge account like Wal-Mart?
     
  3. Athlon646464

    Athlon646464 Gold Members DBSTalk Gold Club

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    Siruis / XM
     
  4. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Winters,...
    Yes, but Sirius-XM was not, is not, as important as TV! A much smaller footprint in a small market.
     
  5. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Winters,...
    I get your point, and agree with the statement that they'd have more clout- but I doubt that'd make a big difference.

    And thousands of companies do not supply Walmart with anything, and many more supply Walmart with just a small fraction of their output, so they could "afford" to lose the account. Still others tell Walmart "NO!" because they're being squeezed.
     
  6. joshjr

    joshjr Hall Of Fame

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    Guess I disagree. When you almost double the paying customers and become the largest company out there, its not as easy to make demands. Do you think AMC would of been off as long if they had lost all Dish & DirecTV customers? Same with any other outage with either company.

    I guess if you had a business and were willing to lose like 50 million customers that would be your decision. Im not even saying I am for this. I have never been a fan of Dish and would not want to be forced to have their equipment, lack of sports programming or anything else of that matter. However I see where Mr. Malone was going with his comments.
     
  7. LtMunst

    LtMunst Hall Of Fame

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    The deciding factor in the Feds greenlighting the Sirius/XM merger was that they were convinced that one or the other was going to go under anyway. I don't think anyone currently believes either DirectTV or Dish is in danger of going out of business anytime soon.
     
  8. joshjr

    joshjr Hall Of Fame

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    Agreed but that shouldn't be the deciding factor.
     
  9. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Josh, why not? If the way to save a service is to merge it with another- and it's the only way- why not permit an exception to anti-monopoly laws and practices?
     
  10. Stewart Vernon

    Stewart Vernon Roving Reporter Staff Member Super Moderator DBSTalk Club

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    To be fair... I don't think monopolies are illegal... Trusts are illegal... they made anti-trust legislation WAY before my lifetime... but monopolies are a weaselly way around trusts... I don't mean that in a bad way, not all monopolies are bad... but I don't think a monopoly is technically illegal in and of itself as long as you don't use that monopoly to abuse people in a way that gets the attention of our government.
     
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  11. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

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    Monopolies are not illegal per se. But combining existing entities so as to create a virtual monopoly will be—at least, can be—prevented by one arm or another of our government. I'm talking nationally, not some grocery outlet buying up all its competition in a town or city.
     
  12. WebTraveler

    WebTraveler Icon

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    Directv and Dish are both legacy systems aka "cash cows."

    Merging the two will create some economy of scale where some efficiencies may be gained, but not much value. The value was in acquiring a cell phone provider, which didn't quite work out or putting programming on the internet on a large scale. That still has yet to be exploited. Ergen sees little value in acquiring Directv, so I doubt it will happen.

    In the long term the concept developed by aereo on renting antennas to capture local television FREE is going to take care of the locals.
     
  13. inkahauts

    inkahauts Well-Known Member

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    I am sure the courts will decide the fate of aero, and if they win, which I hope they do, I hope all cable and sat companies end this ridiculousness of paying over the air channels for their programing. It won't be needed if aero doesn't get shut down.
     
  14. James Long

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

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    Aereo's concept works because each antenna is connected to the individual subscriber through an individual stream. While many streams may follow the same path, they are individual streams of data from the encoder/DVR to the subscriber. While both satellite providers could do that through internet connected receivers and DVRs, the satellite provider's primary connection is via broadcast satellite, And the ONE stream of a local channel via satellite is shared between thousands or millions of subscribers per market.

    In order to make the argument that a DISH or DirecTV satellite feed of a channel was an individual non-shared connection (one connection per viewer) there would need to be one program stream per viewer transmitted via satellite. I do not believe DISH or DirecTV can meet that threshold.

    Their only hope is if the Aereo case is expanded to a point where "providers should not be paying fees to retransmit free TV" ... or at least change the fees to statutory rates similar to distants. Something where providers carry and pay the price instead of negotiating individual fees with individual stations who can withhold programming if the ransom is not paid.
     
  15. Pepe Sylvia

    Pepe Sylvia Legend

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    Yeah, if it were to happen it would be just like SiriusXM. By that I mean you have SiriusXM as the parent company, but you either have Sirius or XM service.

    As far as having more leverage, that could work against the consumer as well. For instance, now they might say "we need xyz or we'll lose customers to Dish/Directv." If they merge, there is less competitive pressure. Less competition is almost never good for the consumer.
     
  16. Joe166

    Joe166 AllStar

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    Why in the world would anyone assume that IF the merged company were to gain substantial concessions from program providers that economy would be passed on to the customer rather than the company? Especially if the closest thing to competition no longer existed.

    Be careful what you wish for. Neither Dish nor DTV is a charitable organization.
     
    1 person likes this.
  17. FLWingNut

    FLWingNut Godfather

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    Why in the world would anyone assume that IF the merged company were to gain substantial concessions from program providers that economy would be passed on to the customer rather than the company? Especially if the closest thing to competition no longer existed.

    Be careful what you wish for. Neither Dish nor DTV is a charitable organization.

    Smartest take in this thread.
     
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  18. joshjr

    joshjr Hall Of Fame

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    Everyone has their tipping point, including me and I am no where near it at this time.
     
  19. damondlt

    damondlt New Member

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    I agree! :righton:
     
  20. cypherx

    cypherx Hall Of Fame

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    Why in the world would anyone assume that IF the merged company were to gain substantial concessions from program providers that economy would be passed on to the customer rather than the company? Especially if the closest thing to competition no longer existed.

    Be careful what you wish for. Neither Dish nor DTV is a charitable organization.


    Great thought!

    Also more subscribers doesn't mean less cost to the content owners. If a channel wants 5 cents a subscriber, well if you have 50 million subscribers, your paying more than if you have 25 million subscribers.
     

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