With the recent news of the AT&T acquisition of DirecTV, there is some question as to what is driving the deal. One of the drivers is said to be fear. As Comcast is in the process of purchasing Time Warner Cable, DirecTV may have been worried they couldn’t succeed in the pay TV industry any longer without partnering up with another giant. If both the Time Warner and DirecTV mergers take place, what kind of pressure does that place on Dish?
A small time company like Dish may have a hard time negotiating deals with networks to stay competitive with the giants of the industry. They would either be forced to merge with a major player, or be forced out. Allowing a couple of major league players to monopolize the playing field could hurt us all in the long run.
The NFL ticket is one of the biggest components going into the mix. If a contract isn’t renewed between DirecTV and the NFL, then AT&T has the option to back out without paying a penalty fee. At this time, DirecTV’s Sunday Ticket can be purchased to watch over the Internet. If DirecTV can negotiate another contract with the NFL prior to the merger, then AT&T may be able to monopolize the option of people watching the NFL via their handheld devices.
AT&T can enjoy some added boosters. Subscriber acquisitions, efficiencies, and product bundling will all boost their profits. These boosters help shed weight and promise to increase the overall health of the companies. In the end, they expect to have a great synergy concoction.
They may be a successful together and increase profits, but at what cost? The main ingredients in this synergism are a combination of diluted stock, and squeezed consumers. It doesn’t sound very appetizing. However, a great juice man knows that it’s more about health than taste.
Consumers have a different view of the two giants creating a synergism. We see the creation of Godzilla, who can bring an extreme change to the communication and media landscapes. He can disrupt the wires and burn down the competition. “Oh no, they say he’s got to go. Go, Go, Godzilla!” (Blue Oyster Cult)
A small time company like Dish may have a hard time negotiating deals with networks to stay competitive with the giants of the industry. They would either be forced to merge with a major player, or be forced out. Allowing a couple of major league players to monopolize the playing field could hurt us all in the long run.
The NFL ticket is one of the biggest components going into the mix. If a contract isn’t renewed between DirecTV and the NFL, then AT&T has the option to back out without paying a penalty fee. At this time, DirecTV’s Sunday Ticket can be purchased to watch over the Internet. If DirecTV can negotiate another contract with the NFL prior to the merger, then AT&T may be able to monopolize the option of people watching the NFL via their handheld devices.
AT&T can enjoy some added boosters. Subscriber acquisitions, efficiencies, and product bundling will all boost their profits. These boosters help shed weight and promise to increase the overall health of the companies. In the end, they expect to have a great synergy concoction.
They may be a successful together and increase profits, but at what cost? The main ingredients in this synergism are a combination of diluted stock, and squeezed consumers. It doesn’t sound very appetizing. However, a great juice man knows that it’s more about health than taste.
Consumers have a different view of the two giants creating a synergism. We see the creation of Godzilla, who can bring an extreme change to the communication and media landscapes. He can disrupt the wires and burn down the competition. “Oh no, they say he’s got to go. Go, Go, Godzilla!” (Blue Oyster Cult)
