Interesting but not going to happen.....
http://biz.yahoo.com/rb/060329/media_directv_echostar.html?.v=2
http://biz.yahoo.com/rb/060329/media_directv_echostar.html?.v=2
DirecTV wants Echostar but sees regulatory hurdles
- Thread starter BarryS14
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Maybe once both companies lose so many subscribers that they risk going out of business then the government might allow a merger to keep them alive.
lets see ATT is slowly reforming itself... I suspect once FIOS really kicks off(in about 10 years) and cable really really get their butts whooped it will happen
It would not take too aweful long though for Dish and DirecTv to get a beating if FIOS gets a major deployment or IPTV really takes over. Just look at how much churn there is in the satellite industry. They actually have lots of new subscribers that sign up for service but most of the net additions is lost to those that disconnect the service. There's only so many new customers to get out there.
Its not right how the government works.Its ok for Comcast to buy almost every cable system they can but we can't have one Satellite company.It REALLY makes me angry.I was so upset when the merger before did not go through. I think both companies working together as one would give us a better company thats my opinion.every Represenitive in D.C. should have to have crappy cable service and high rates and never be able to choose from anything else.Sorry for the rant but it just gets me that the Government seems to baby the cable companies .
Why is this even news?? Large companies always want to purchase their smaller competition. Big deal. Nothing's changed since 2002...it ain't gonna happen, and thank God...this would NOT benefit the consumer.
Lets look at history. This merger/buyout WILL happen. When it happens is the key. There are 3 major competitors right now. Dish, Directv and Cable. With FIOS coming down the road that will be 4. Most mature industries prefer dualopolies or oligopolies or in some cases near monopolies.
Not trying to sound like an Economics professor but look at the constant merger and acquisitions of mature markets. Other than the airline and car industry (theres even been consolidation here), most industries like 2-3 players. Anything more is insignificant or ripe for buyout. Take beer industry. Lots of competitors but only 3 major ones in US that suck up over 80% of sales. Heck, even Coors merged with Molson and Miller is owned by a South African company I believe.
Big box retail. Walmart and Target. Yes there are others (KMart is still around) but look what they did the regionals like Caldor, Ames, Bradlees, etc. Even Telcos. Big Bell got broke up in the 80's only to reimerge in 2005. Cell phone players. How many do we have now?
All I am trying to say is the satellite TV industry is maturing. Competition during its time did matter but the growth curve is slowing and a new competitor is emerging. It may not happen immediately but as soon as new customers peek, these 2 will become one. Even the FCC will admit that the peak of growth is over for sats and they will be fighting a battle between cable and FIOS. There is so much overlap and inefficiency in 2 separate sat providers that they will agree.
Key is, when? Any bets on timeframe?
Not trying to sound like an Economics professor but look at the constant merger and acquisitions of mature markets. Other than the airline and car industry (theres even been consolidation here), most industries like 2-3 players. Anything more is insignificant or ripe for buyout. Take beer industry. Lots of competitors but only 3 major ones in US that suck up over 80% of sales. Heck, even Coors merged with Molson and Miller is owned by a South African company I believe.
Big box retail. Walmart and Target. Yes there are others (KMart is still around) but look what they did the regionals like Caldor, Ames, Bradlees, etc. Even Telcos. Big Bell got broke up in the 80's only to reimerge in 2005. Cell phone players. How many do we have now?
All I am trying to say is the satellite TV industry is maturing. Competition during its time did matter but the growth curve is slowing and a new competitor is emerging. It may not happen immediately but as soon as new customers peek, these 2 will become one. Even the FCC will admit that the peak of growth is over for sats and they will be fighting a battle between cable and FIOS. There is so much overlap and inefficiency in 2 separate sat providers that they will agree.
Key is, when? Any bets on timeframe?
I agree with those who think that the contemplated merger is an antitrust violation at worst, and just an anticompetitive satellite monopoly unlikely to be approved at best.
I also agree that a merger of this type might ultimately be approved when or if the stunning band width and bitrates of FIOS and fiber optics eventually make satellite an obsolete, or noncompetitive video provider.
Also, I cannot, for the life of me, understand how Rupert and D* getting their hands on more of any form of video delivery system could make it better for the consumer.
Yikes!
Fortunately, it takes D* so long to "plan" and do anything we probably have no worries.
I also agree that a merger of this type might ultimately be approved when or if the stunning band width and bitrates of FIOS and fiber optics eventually make satellite an obsolete, or noncompetitive video provider.
Also, I cannot, for the life of me, understand how Rupert and D* getting their hands on more of any form of video delivery system could make it better for the consumer.
Yikes!
Fortunately, it takes D* so long to "plan" and do anything we probably have no worries.
Brewer4 said:
I agree that a merger between E* and D* will eventually happen, however I believe it is a few years away. As AT&T and Verizon become major players as a TV service provider's, this will pave the way for a E* and D* merger, but it will likely be at least 3 - 5 years in the future.
If I'm not mistaken, they already tried this merger several years ago... and failed to get regulatory approval. But that was before AT&T started to re-assemble itself, this time the regulators may view things differently.
Blocking a merger like this only serves to protect the cable providers, who don't deserve the protection. They get enough protection already in the sense that they have geographic monopolies (called local franchises).
If the cable companies had to compete with each other, within a geographic region, there would be very little market for satellite tv.
Blocking a merger like this only serves to protect the cable providers, who don't deserve the protection. They get enough protection already in the sense that they have geographic monopolies (called local franchises).
If the cable companies had to compete with each other, within a geographic region, there would be very little market for satellite tv.
and when it does we can all trade in our 1000 dollar HDtivo's that we own for a small 300 dollar fee so we can rent a box.Chris Freeland said:
FCC said, "combination of the top two satellite companies would stifle competition." I don't think it would. I feel that after awhile people would get tired of one choice in a satellite provider and would jump ship if something different came along. C Band is still around and if by chance, (big IF) it could become an attractive alternative again and may still if IPTV takes off. Voom's demise was a bad one but if Dish and DirecTV had merged back in 2002 and Voom offered east & west coast feeds. I believe a viable alternative would have been there for sure. With one provider there would always be room for another. The norm gets old and people will search and jump to alternatives when given the chance.
cable,
ill bet you any amount that Rupert and Charlie were doing all they could to make damn sure voom went under.
as far as a merger?? no way. it would be a BUY OUT. PERIOD.
can you really imagine Ergen and Murdoch SHARING a company??
one more thing, the sun never sets on Rupert's empire, it is worldwide, Charlie doesn't have clout even in this country. hell the FCC makes him jump thru all kind of hoops for anything he wants.
it would be news corp buying up echostar completely. and Charlie walking away. look how Ted Turner was a few days ago, a beaten man. he should have walked away with the $$$$$ and enjoyed his life.
just MY thoughts, and i could be wrong.
ill bet you any amount that Rupert and Charlie were doing all they could to make damn sure voom went under.
as far as a merger?? no way. it would be a BUY OUT. PERIOD.
can you really imagine Ergen and Murdoch SHARING a company??
one more thing, the sun never sets on Rupert's empire, it is worldwide, Charlie doesn't have clout even in this country. hell the FCC makes him jump thru all kind of hoops for anything he wants.
it would be news corp buying up echostar completely. and Charlie walking away. look how Ted Turner was a few days ago, a beaten man. he should have walked away with the $$$$$ and enjoyed his life.
just MY thoughts, and i could be wrong.
I agree with most of the above.
BUT
If the government were to allow anything REMOTELY close to this deal, it would be the creation of a "spin-off company" that they co-owned. There is NO WAY the government will allow News Corp or Echostar to exist as the sole DBS provider in the CONUS.
My example of a great 3rd company "spin-off" would be to join forces to create a USSB type premium company. This company would merge all DirecTV & Dishnetwork resources that deal with HD and NFL ST / ST in HD (maybe even all the HD locals) onto the next best orbital slot (aka NOT 101).
This new team venture would sell said premiums (even NFL) to both DirecTV & Dishnetwork customers and with the joined power could better fight to get current exclusive HD content like iNHD and should then have the extra transponder space right now to add the rest of the current HD channels.
BUT
If the government were to allow anything REMOTELY close to this deal, it would be the creation of a "spin-off company" that they co-owned. There is NO WAY the government will allow News Corp or Echostar to exist as the sole DBS provider in the CONUS.
My example of a great 3rd company "spin-off" would be to join forces to create a USSB type premium company. This company would merge all DirecTV & Dishnetwork resources that deal with HD and NFL ST / ST in HD (maybe even all the HD locals) onto the next best orbital slot (aka NOT 101).
This new team venture would sell said premiums (even NFL) to both DirecTV & Dishnetwork customers and with the joined power could better fight to get current exclusive HD content like iNHD and should then have the extra transponder space right now to add the rest of the current HD channels.
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