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Rupert Murdoch unloads on DirecTV

3180 Views 24 Replies 20 Participants Last post by  Packersrule
http://www.multichannel.com/article/CA6597182.html?desc=topstory

New York-News Corp. chairman Rupert Murdoch told an audience at an industry conference here Wednesday that his decision to swap his interest in DirecTV Group with Liberty Media was in part because of his fears that the satellite giant would not be able to compete with cable operators and telephone companies.
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"unloads" seems a bit strong. He stated that he feared that the triple play from cable and the emerging phone company products would weaken DIRECTV. then he admits that he might be wrong considering that DIRECTV is still growing, but he thinks he will still be right in the long run. Sounds like he just felt like he needed to justify his decision, not that he was unloading on DIRECTV.
Herdfan said:
Sellers Remorse.

For too many years I care to count, the lack of smarts by the 'investor class' when it comes to telecommunications, is usually breathtaking.

I've done many 'fiber to the home' engineering projects over the last 20 years, including many hybrid-coaxial (cable) schemes. At the end of the day, the cost analysis on ALL of them (INCLUDING FIOS) were jaw-dropping.

As a stock holder in Verizon, as well as doing some of the original engineering design for the system circa 1998+, that the 'best/lowest cost' of FIOS is around $3500 per POTENTIAL subscriber passed. Originally, when they first started building the systems, that cost was at least $2K more. Again, that's potential subscriber (not actual subscriber) passed. You got 20 homes on your street? That's 20 x $3500, or $70k. Now Verizon stockholders know where their stock values are going.

Coaxial cable systems are cheaper, but obviously very limited in comparison. 1Ghz systems, not counting so-called 'Switched Video' (which doesn't really exist yet), are upwards of $1K per potential subscriber passed.

Now you get an idea of why the cable industry took better than 30 years to actually show any kind of profit. The Telcos (Verizon in particular, but being joined with different hybrid 'systems' like AT&T and Qwest), it will be decades before the investment pans out. Say, 2040 or so.

Until then, the most efficient and cost effective way to move video to the consumer will continue to be satellite. Things like 'digital' phone and usable speed IP internet, is well served by current twisted pair copper (very cheap) technology.
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Until I can get NESN in Florida... or Cable has over 100 channels of HD, not counting PPV or OnDemand... I will never switch back. I have Comcast for internet and BellSouth for phone... I have no issue having three separate providers.

But that is just my humble opinion :)
Yeah.... have 3 seperate providers as well. It may cost more but it does work for me. There is something to be said for not having all of your eggs in one basket.
Didn't you guys hear?
DirecTV is filing for bankrupcy next week.

They've admitted that cable tv is too good now that they've figured out how to offer 500 VOD downloads in High Def available 24/7, and DirecTV just can't compete with that.

They've admitted that all those customers who live out in the sticks who can't get cable tv are really far better off moving into a big city as this will ultimately make them better human beings.

All of the DirecTV satellites are now set to self-destruct on Sunday, Sept 21st at 10:59am (right before kickoff of the next football game), and when the pieces fall to the earth, they will collect them and sell them to scrapyards for $0.10 a pound so they can collect enough money to give at least a few of the CSR's their last paycheck.
Supervolcano said:
DirecTV is filing for bankrupcy next week.
bummer....if they just couldve gotten like 10 more ppv hd channels im sure people wouldve stayed.
66stang351 said:
...he feared that the triple play from cable and the emerging phone company products would weaken DIRECTV.
I don't think so.

Too many people have gotten burned by putting all their communication and entertainment sources into one basket. Most folks don't trust any of these companies any more and they realize that having all services from one company makes it harder to leave if dissatisfied with service.
I tried the Bell South "triple play" some years back. Thats how I got DirecTV in the first place. Bell South (now AT&T) treadted me like a cost center, not a customer. Long story short...I cut the phone line and switched to cable internet and phone several years back, but kept DirecTV. I am happier now. I still despise Bell South. Bundling services is a BAD idea.
I think that he may have a valid point. I know a few people who have left DirecTV for Cable or Fios because of the "triple play" option. It was never because they wanted the service for video, but because they got such a great deal on the Internet and phone service.

However, once the 1-2 year introductary pricing expires, most of them plan on returning to DirecTV. On the other hand, if they can maintain the reduced pricing for bundles, the Cable companies and Verizon could continue to use that to their advantage.
Bundling is about as bad an idea as having a lot of auto-pay bills on a credit card or bank account. It's convenient, but a big PITA if you suddenly need to quickly cancel a card or account, due to fraud or other problems.
Supervolcano said:
Didn't you guys hear?
DirecTV is filing for bankrupcy next week.

They've admitted that cable tv is too good now that they've figured out how to offer 500 VOD downloads in High Def available 24/7, and DirecTV just can't compete with that.

They've admitted that all those customers who live out in the sticks who can't get cable tv are really far better off moving into a big city as this will ultimately make them better human beings.

All of the DirecTV satellites are now set to self-destruct on Sunday, Sept 21st at 10:59am (right before kickoff of the next football game), and when the pieces fall to the earth, they will collect them and sell them to scrapyards for $0.10 a pound so they can collect enough money to give at least a few of the CSR's their last paycheck.
Now, that's funny. :lol: :lol: :lol: :lol:
66stang351 said:
"unloads" seems a bit strong.
Yeah, but I copied the headline from here:

http://www.dslreports.com/shownews/Rupert-Murdoch-Unloads-On-DirecTV-97815
Would you like to know the real reason?Look alittle lower. Mr. Murdoch was out maneuvered by Mr. Malone plain and simple.Mr. Malone got enough NewsCorp stock it put the worry in Mr. Murdoch because Mr. Murdoch also wanted to consolidate NewsCorp for his family.It's a game the rich love to play.;)

It's a good thing too.Because it was Mr. Murdoch that also brought in NDS(another company he owns) to make DirecTV's first in house no frills DVR.Let's face it Americans are TV sponges we have to have the full frills version DVR.The best satellite service in America deserves Tivo and Mr. Malone knows that!.:sure:
Bill Broderick said:
I think that he may have a valid point. I know a few people who have left DirecTV for Cable or Fios because of the "triple play" option. It was never because they wanted the service for video, but because they got such a great deal on the Internet and phone service.

However, once the 1-2 year introductary pricing expires, most of them plan on returning to DirecTV. On the other hand, if they can maintain the reduced pricing for bundles, the Cable companies and Verizon could continue to use that to their advantage.
I'm the exact opposite. I switched to FIOS because they had the same HD lineup as DirecTV at the time, if not slightly better (FIOS had all HD locals from two markets; DirecTV only offered four from Baltimore) and offered a far better HD picture. I actually ended up with a "quadruple play" package because I already had Verizon landline and wireless phone services. The real clincher was being able to dump Comcast wideband internet for the superior FIOS service.

DirecTV lept out in front of FIOS with the latest HD mpeg4 lineup but Verizon just activated a bunch more HD channels in my area as of yesterday and have promised more than 100 available HD channels by year's end. Based on my current viewing habits, there is only one channel left out of all the ones I watch on a regular basis that has not been made available in HD (Fx). I'm hoping that's one of the channels that will be added by the end of the year, making me one happy camper.:D

I have never given anything but a fleeting thought to return to DirecTV so I'm not sure where you're getting your info. Most everyone I know that's switched to FIOS plans to stay with FIOS for the long haul. My niece's husband has never been happy with any TV provider until he switched to FIOS. He went from DirecTV to Comcast to FIOS and he's finally a satisfied customer.

Bundling all four services gets me a better price on my TV service, and not just for a limited time. I do recall Verizon offering a lower price for the 1st year, but that's pretty much standard practice throughout the industry. DirecTV does it all the time with their freebies and incentives. I love having all four services show up on a single bill. It makes budgeting my monthly finances a whole lot easier. FWIW, I'd never set up automatic paymebnts for any creditor, regardless of how convenient I thought it might be. I do all of my banking online so it's easy for me to schedule regular payments when I want and not have some creditor dip into my account unnanounced. Once you give them access you lose any leverage for settling disputes because you've already authorized whatever payments they seem fit to charge you.
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dcowboy7 said:
bummer....if they just couldve gotten like 10 more ppv hd channels im sure people wouldve stayed.
!rolling I don't like all those bundles myself. And I didn't pay enough attention to where all those satisfied Verizon customers were from, but where I live Verizon does an awful job just with their phone service :raspberry
bjamin82 said:
Until I can get NESN in Florida... or Cable has over 100 channels of HD, not counting PPV or OnDemand... I will never switch back. I have Comcast for internet and BellSouth for phone... I have no issue having three separate providers.

But that is just my humble opinion :)
Which service is more reliable?

Directv with the rain issues

Comcast with Comcast issues

Bellsouth with Dialtone.

I have had all three and Bellsouth was most reliable for dialtone and DSL
I even had Directv DSL and it was fine...until they went out of the DSL business.
captain_video said:
I'm the exact opposite. I switched to FIOS because they had the same HD lineup as DirecTV at the time, if not slightly better (FIOS had all HD locals from two markets; DirecTV only offered four from Baltimore) and offered a far better HD picture. I actually ended up with a "quadruple play" package because I already had Verizon landline and wireless phone services. The real clincher was being able to dump Comcast wideband internet for the superior FIOS service.

DirecTV lept out in front of FIOS with the latest HD mpeg4 lineup but Verizon just activated a bunch more HD channels in my area as of yesterday and have promised more than 100 available HD channels by year's end. Based on my current viewing habits, there is only one channel left out of all the ones I watch on a regular basis that has not been made available in HD (Fx). I'm hoping that's one of the channels that will be added by the end of the year, making me one happy camper.:D

I have never given anything but a fleeting thought to return to DirecTV so I'm not sure where you're getting your info. Most everyone I know that's switched to FIOS plans to stay with FIOS for the long haul. My niece's husband has never been happy with any TV provider until he switched to FIOS. He went from DirecTV to Comcast to FIOS and he's finally a satisfied customer.

Bundling all four services gets me a better price on my TV service, and not just for a limited time. I do recall Verizon offering a lower price for the 1st year, but that's pretty much standard practice throughout the industry. DirecTV does it all the time with their freebies and incentives. I love having all four services show up on a single bill. It makes budgeting my monthly finances a whole lot easier. FWIW, I'd never set up automatic paymebnts for any creditor, regardless of how convenient I thought it might be. I do all of my banking online so it's easy for me to schedule regular payments when I want and not have some creditor dip into my account unnanounced. Once you give them access you lose any leverage for settling disputes because you've already authorized whatever payments they seem fit to charge you.
Except for the NFL Sunday Ticket, I could survive quite nicely with OTA HD. That said, I've purchased the NFL Sunday Ticket 12 years in a row.
Bill Broderick said:
I think that he may have a valid point. I know a few people who have left DirecTV for Cable or Fios because of the "triple play" option. It was never because they wanted the service for video, but because they got such a great deal on the Internet and phone service.

However, once the 1-2 year introductary pricing expires, most of them plan on returning to DirecTV. On the other hand, if they can maintain the reduced pricing for bundles, the Cable companies and Verizon could continue to use that to their advantage.
I know an AT&T wireless employee who went with the Comcast triple play to save money over the BellSouth Directv triple play option.
I built my own triple play with Comcrap internet,Vonage phone,Directv and came out around 35 bucks a month cheaper than Comcrap triple play after the promotion.
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