A DirecTV and Dish Network merger appears to be a possibility once again. While the possibility of a merger has circulated for years, the latest reporting of talks comes from Bloomberg, citing “people familiar with the matter,” and Reuters, citing “a person familiar with the matter,” for the details.
According to the reports, talks between DirecTV and Dish parent EchoStar are in the early stages and it is still possible that the talks will end without an agreement.
If an agreement is made, the merger is expected to result in a the creation of the largest pay-TV provider in the U.S.
While this isn’t the first time a merger has been discussed, the pay-TV market has changed dramatically since those first talks. A merger today would likely provide the combined entity with a much greater ability to negotiate with programmers at a time when negotiations are becoming increasingly harder, due to the desire of programmers to offer their own direct-to-consumer services at the same time.
DirecTV, for example, is currently locked in a dispute with Disney. The dispute resulted in DirecTV and DirecTV Stream subscribers losing access to Disney-owned channels, including ABC and ESPN, and the public statements by the two companies have suggested this is a particularly problematic dispute.
One of the main sticking points seems to be the potential launch of Venu Sports, a standalone sports streaming service that bundles sports networks and content from Disney, Fox and Warner Bros. Discovery. More specifically, DirecTV’s inability to offer a competing sports-focused skinny package.
DirecTV has also accused Disney of requesting the company waives its rights to make any anti-competitive claims against Disney now or in the future. A caveat that led to the filing of an FCC complaint against Disney by DirecTV.
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