Murdoch: Gov't Would Approve DirecTV/Echostar

[waltinvt]

The prospects of a "E"-"D" merger or takeover are definitely more probable now than they have ever been.

The combined assets and bandwidth would immediately make possible the carrying of every available HD channel that wants to be carried.

There could probably be 100% LiL coverage within months, with all affiliates swapping out digital for analog as they become ready.

The "Distants" problem instantly goes away.

Although competition between sat companies ceases, competition between sat and cable and internet based carriage immediately increases (a lot). It's overall better for consumers so congress won't balk.

Although it will probably seal the fate of small town cable companies, telecommunications have moved into the 21st century and companies that can't keep the pace will have to either merge or go under.

Personally I think there's a lot of important stuff going on behind the scenes right now.

 

[HCI]

As an E* subscriber, I would see it as a BAD thing. Prices would most definitely increase and who knows what would happen to quality? Of course the additional satellites would seem to bode well for picture quality (after deleting some duplicate channels), but I am more concerned of D* "screw what the customer wants" mentality (i'm referring to HD-Lite).

Other than Indian customer support reps, I have been, for the most part, happy with E*. It seems they are really trying to push this little thing we call HD.

I don't see the effect you see. If this happens they would have more birds with more space meaning more and better HD quality right? I also don't think prices will increase because they will have more customers to generate more revenue.

However I never see this deal happening.

 

[BobMurdoch]

The prospects of a "E"-"D" merger or takeover are definitely more probable now than they have ever been.

The combined assets and bandwidth would immediately make possible the carrying of every available HD channel that wants to be carried.

There could probably be 100% LiL coverage within months, with all affiliates swapping out digital for analog as they become ready.

The "Distants" problem instantly goes away.

Although competition between sat companies ceases, competition between sat and cable and internet based carriage immediately increases (a lot). It's overall better for consumers so congress won't balk.

Although it will probably seal the fate of small town cable companies, telecommunications have moved into the 21st century and companies that can't keep the pace will have to either merge or go under.

Personally I think there's a lot of important stuff going on behind the scenes right now.

Charlie made the same argument and was shot down.

The ONLY thing that has changed is that Rupert wants control instead of Charlie. Rupert singlehandedly jerked the media from the left to the center or right. The Republicans in control love this. Charlie has been a thorn in everyone's side and has refused to play ball, not showing up with bags of cash via lobbyists like he is supposed to. IF this passes it will just be another glaring example of why the cynics are right and the Congress is in the hands of those who would trade ethics and principles for cash.

 

[woljr]

http://www.tvpredictions.com/murdoch072406.htm

Murdoch Talks DIRECTV-Echo Deal
The media mogul fuels speculation that DIRECTV and EchoStar will make a deal.
By Phillip Swann

Washington, D.C. (July 24, 2006) -- Rupert Murdoch, chairman of News Corp., says the federal government would likely approve a merger between EchoStar and the News Corp.-owned DIRECTV.

Speculation has risen in the last week that the two satcasters will merge. But some analysts have expressed doubt, noting that the federal government rejected a similar merger in 2002 on grounds that it would stifle competition.

However, Murdoch says the marketplace has changed, leaving consumers with a variety of video choices.

"There are so many alternatives, ways of getting pictures and information," Murdoch said last week on The Charlie Rose Show. "I think it would be much harder for the government to turn it down."

Murdoch did not say if the two companies are in talks, but his comments have fueled talk that a deal could be forthcoming.

Still, Murdoch cautioned that a merger could be difficult because EchoStar CEO Charlie Ergen might insist on running the company "at least for awhile."
Murdoch did not say if he would oppose that arrangement.

Murdoch's News Corp. and Ergen's EchoStar planned to merge in 1997 but the deal fell through when Ergen clashed with News Corp. executives prior to its completion.

DIRECTV and EchoStar helped fuel merger speculation this month when they teamed up to bid in next month's U.S. auction of wireless airwaves. And last March, Mike Palkovic, DIRECTV's chief financial officer, told an industry conference that his company was interested in buying EchoStar.

Swanni Sez:
Murdoch's comments suggest that the merger is indeed possible. The 75-year-old media mogul would have never publicly suggested that a deal would be approved by the feds unless he was interested in pursuing one. He seems to be laying the groundwork for a lobbying campaign in DC in case DIRECTV and EchoStar are able to make a deal.

However, you also can't dismiss Murdoch's cautionary comments about Ergen. He could be sending a message to Charlie that the deal could fall apart if he keep insisting on control.

--- ----------------------------------------------: : :

Maybe MURDOCH's scheme is to hold back expansion of HD channels and HDDVR release in order to make the competition of CABLE in HD appear more viable. Therefore showing that by merging D and DISH would not be a monopoly as previously ruled. If I was in charge that is what I would do as CEO and trying to buy out competition and gain GOVernment approval. Think about it and the waiting game and the promises we have all experienced over the past few years.

 

[woljr]

Maybe MURDOK's scheme is to hold back of HD and HDDVR release in order to make the competition of CABLE in HD look more viable. LOOK-- LOOK ___LOOK Cable is more technologically advanced than D.. Therefore showing that by merging D and DISH would not be a monopoly as prerviously ruled. If I was in charge that is what i would do as CEO and trying to buy out competition and gain Government approval. Think about it and the waiting game and the promises we have all expeerienced over the past few years.

 

[Poke]

Well if Charles is smart he will not merge due to I see Dish being the Sat leader. Also be on of the to TV Service leaders in the US due to it seems that Direct is a slow sinking ship. Due to the more and more I read it sounds like their upper management does not have a clue about running a tech company. Anyway more bad news for Direct Customers who should jump the ship come to Dish..

http://www.forbes.com/markets/2006/07/24/directv-0724markets07.html

DVR Delay May Alienate DirecTV Customers: Report
Mary Crane, 07.24.06, 11:42 AM ET

DirecTV Group


DirecTV has delayed for the third time its new hi-definition digital video recorder, which could mean more customers will switch to competitors, according to a report from research firm Sanford C. Bernstein.

The new DVR was originally scheduled to launch early this year and is now being pushed back until the fall. Until recently, many customers have said they were willing to wait to upgrade to hi-definition television, or HDTV, until the new DVR is available.

"But," wrote Sanford C. Bernstein analyst Craig Moffett in a report to investors Monday, "we're skeptical investors will continue to give DirecTV a free pass."

Customers who have just spent money on expensive flat-panel hi-definition televisions may not be willing to wait for DirecTV to come up with its new offerings and could switch to competitor EchoStar's DISH satellite network or cable operators instead.
And for those that do stay with DirecTV, upgrades will mean a sharp uptick in retention-marketing costs.

"Product shortages will only delay the inevitable, in our view," Moffett said, as DirecTV (nyse: DTV - news - people ) continues to fall behind its cable peers in high-definition offerings, especially industry leader Comcast (nasdaq: CMCSA - news - people ).

The analyst maintained a "market perform" rating and $16 price target on DirecTV.

 

[MikeD-C05]

I agree Directv doesn't strike me as a technical cutting edge leader. THey haven' t added any hd channels to compete other than locals. THeir picture quality is poor and lacking in sd and hd, and they don't care if you like it or not.

THe lack of a hd mpeg 4 dvr is proof to me that they do not know what they are doing. Hell Rupert could have bought Tivo and had built in software for all the directv receivers and had them work right from the start but nooooooo. He wants to invent the wheel from the start all over again.

I pray that Charlie doesn't allow this merger or take over unless he is in control of the running of the new company. Directv was good enough in the 90s but they have stood still to long ,to gain any hd customers. Unless 2007 brings an explosion of new hd channels to Directv , I see this company in trouble and that might be why Rupert wants Dishnetwork. They have all the cutting edge technology that Directv lacks and they have all the hd channels that Directv can't add due to bandwith restraints.

 

[HCI]

You HD guys are amazing. HD is a good gimmick but it is not what is running the two company's. Our company will put in a HD system 1 out of 15 times maybe. Mass people are not going to drop D* and go to Dish just because Dish has Voom, which we know everyone needs. A few hardcore HD people will get Dish but most people don't really care. How many hardcore HD fans do you think there are compared to hardcore NFL fans.

 

[robert393]

You HD guys are amazing. HD is a good gimmick but it is not what is running the two company's. Our company will put in a HD system 1 out of 15 times maybe. Mass people are not going to drop D* and go to Dish just because Dish has Voom, which we know everyone needs. A few hardcore HD people will get Dish but most people don't really care. How many hardcore HD fans do you think there are compared to hardcore NFL fans.

Keep thinking that......lol! \
Robert

 

[HCI]

Keep thinking that......lol! \
Robert

Which part? The HD part or the Voom part.

 

[HCI]

I could only find 2006 1st quarter results maybe someone has 2nd.

Directv added 255,000 net subscribers with a churn rate of 1.45% in the quarter.
http://media.corporate-ir.net/media_files/irol/12/127160/pdf/Q12006EarningsRelease.pdf
This is a PDF file, sorry.

Dish added 225,000 net subscribers with a churn rate of 1.57%
http://media.seekingalpha.com/article/10560

Still think the HD thing plays a big part in subscriber growth?

 

[robert393]

Which part? The HD part or the Voom part.

The part that insinuates HD is not important to consumers. HD material is important to the thousans of people a day that are buying new HD ready sets, and wanting to have HD. The Satelite/Cable company that doesn't think that, is the company soon to be out of business. Of course they DO KNOW THAT, hence the prolific advocating of "More HD Content" & "HD Leader" in their ad campaigns

HD is a good gimmick........ A few hardcore HD people... but most people don't really care

Just keep thinking that! Sounds like you may be hanging onto that VHS player thinking this DVD "gimmick" will soon pass.

Robert

 

[HCI]

The part that insinuates HD is not important to comsumers. HD material is important to the thousans of people a day that are buying new HD ready sets, and wanting to have HD. The Satelite/Cable company that doesn't think that, is the company soon to be out of business. Of course they DO KNOW THAT, hence the prolific advocating of "More HD Content" & "HD Leader" in their ad campaigns

Just keep thinking that! Sounds like you may be hanging onto that VHS player thinking this DVD "gimmick" will soon pass.

Robert

Read the post right above this.

 

[robert393]

Read the post right above this.

So, you got your opinion "HD is a Gimmick, and nobody cares about it". Hey, no offense, keep your VHS, and your SD tv.........but HD is here, and it matters to lots of people (just not you). Hey, some people still have their 8-track player in their car because they think this cassette & CD thing is a "gimmick" too.
Robert

 

[MikeD-C05]

This is why Directv is still so far behind dish and cable with regards to their hd offerings and the fact they have had to delay their hd dvr 3 times so far this year. They are thinking like it is 1999 instead of 2006. The only thing I see that they are doing is providing hd locals which is needed. Dish is doing both : hd national channel additions and hd locals. Oh yeah and we have had a hd mpeg4 dvr since February of this year and it actually works. Dish has proven they are on the cutting edge of sat technology and they are the HD leader. Murdoch getting Dish would be a Giant step backwards in regards to hd and to high tech adopters.

 

[Greg Bimson]

This is why Directv is still so far behind dish and cable with regards to their hd offerings and the fact they have had to delay their hd dvr 3 times so far this year.

Here we go again...

DirecTV did not have enough bandwidth for HD. Technically, they still don't. That won't occur until next year, once DirecTV 10 and 11 are launched.

As far as delaying the HD DVR, fine. However, for most people the HDTiVo will still work. The only reason the MPEG4 version of the HD DVR would be important is for those that can only get their locals via the Spaceway satellites. Nothing else is in MPEG4, yet. And we are still hearing horror stories regarding the ViP 622.

Dish has proven they are on the cutting edge of sat technology and they are the HD leader. Murdoch getting Dish would be a Giant step backwards in regards to hd and to high tech adopters.

Uh, DirecTV has already stated they will be behind the HD curve until DirecTV 10 and 11 are available. The availability of those two satellites will change everything.

 

[MikeD-C05]

OKay, when are these two satellites going to launch ?

From what I read on the tv predictions site today , the President of Directv Chase Carey said ; "the fears about them launching a hd dvr are overblown."

Then Swani then goes on to say that Careys comments are inexcusable. "INstead of trying to defend the indefensible, he should be apologizing to his subscribers for failing to deliver the hd recorder on time- or should I say - any time. The vague promise of launching the device this Fall is not reassuring."

IF Directv can turn all this around by next year ,without a merger or buyout of Dish, I will be really surprised.

 

[Greg Bimson]

It wouldn't surprise me. DirecTV's plans are fairly transparent. DirecTV has always maintained a 2007 date for 150 national HD and 1500 local digital channels. Right now, one of the larger issues is the MPEG4 DVR.

I recently, say over the past five months, picked up the HD TiVo. I am not necessarily a TiVo zealot, but I wouldn't give it up for the MPEG4 DVR.

Here, DirecTV had a pretty good partner in TiVo. DirecTV should have simply contracted with TiVo, and the MPEG4 DVR would be out already. Instead, in one of DirecTV's transparent plans, it appears DirecTV is trying to make everyone's viewing experience the same. Which of course includes the interfaces, something that TiVo probably would not relinquish in a deal with DirecTV.

The DVR still goes back to a different mantra of customer. I'll never go back to live viewing. But DVR's are still less than 15 percent of the customer base for DirecTV and Dish Network. HD is also in only about 15 percent of the customer base, as well. It bodes real well that the H20 receiver is the top priority of DirecTV.

 

[HCI]

So, you got your opinion "HD is a Gimmick, and nobody cares about it". Hey, no offense, keep your VHS, and your SD tv.........but HD is here, and it matters to lots of people (just not you). Hey, some people still have their 8-track player in their car because they think this cassette & CD thing is a "gimmick" too.
Robert

Robert please read my origanal post. The point I am trying to make is HD content is not running either of the two company's. I know HD going to one day rule but as of right now not alot of people can afford HD set and HD equipment and programming. People are trying to say that because D* has fewer channels than Dish that they are failing in attracting new customers and customers are flooding the market running away from them. HD is great to have but it is mainly only important to use geeks that spend hours upon hours online fighting which is the better company, like the argument that the xbox is better than the PS2, I could care less but they both have hard core fans. The normal person you walk by on the street could care less about HD "right now".

 

[Tvlman]

A service (DTV) with the fewest HD programs merging with a service (DISH) that has the most HDTV since VOOM. Sounds one-sided to me.