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Tag: DirecTV

  • DirecTV Drops the Ball Again on ‘NFL Sunday Ticket’

    DirecTV Drops the Ball Again on ‘NFL Sunday Ticket’

    DirecTV users were up in arms after the streaming service dropped the ball again on NFL Sunday Ticket.

    For the second week in a row, DirecTV users lost access to the NFL games they are paying to watch. The company confirmed the issue after a flurry of tweets from angry users.

    Roughly an hour later, the company tweeted the issue was fixed and that it would continue to monitor it:

    Only time will tell if the issue is fixed for good. If not, the company is going to have major issues on its hands if its users can’t access the games they’re paying for.

  • DirecTV Joins SpaceX, OneWeb in Objecting to Dish Network’s 5G Plans

    DirecTV Joins SpaceX, OneWeb in Objecting to Dish Network’s 5G Plans

    The hits keep on coming for Dish Network’s 5G plans, with rival DirecTV contacting the FCC with concerns about the impact on satellite TV.

    Dish Network is working to roll out its 5G network. Once known almost exclusively for satellite TV, US regulators want Dish to be the nation’s fourth nationwide carrier, replacing Sprint. In order to achieve that, the company is looking to utilize 12GHz spectrum for its 5G network.

    Unfortunately, SpaceX has raised concerns about Dish’s use of 12GHz spectrum since it falls in the same range as that used by SpaceX to downlink its Starlink satellites with their corresponding ground base stations. SpaceX has warned that its customers will see outages 74% of the time. OneWeb, SpaceX’s British rival, has backed up those claims, saying Dish’s plans would cause significant disruptions.

    DirecTV is now joining the chorus, according to SpaceNews, warning that Dish’s plans would exceed limits designed to protect Direct Broadcast Satellite (DBS) systems by 100 to 100,000x.

    “Unlike broadband systems, which can replace lost [data] packets through two-way communications, DBS packets lost to interference result in frozen video screens—and canceled subscriptions,” wrote Stacy Fuller, DirecTV’s senior vice president of external affairs, in a letter to the FCC.

    “Accordingly, the Commission should terminate this proceeding and give incumbent satellite operators in the band the certainty they need to continue to invest in developing and delivering advanced services for American consumers.”

    Dish has denied SpaceX’s claims, but the growing chorus of objections is bound to raise concerns at the FCC, especially given the agency’s emphasis on closing the digital divide in the US. Starlink is already proving an invaluable part of that effort, lending weight to concerns it raises about interference.

  • DirecTV Prices Going Up in January

    DirecTV Prices Going Up in January

    DirecTV is raising its streaming and satellite TV packages starting in January.

    DirecTV was spun off from AT&T in August, and now competes with the likes YouTube TV, Hulu with Live TV, Sling TV, and fuboTV streaming services, while still competing with Dish Network for the satellite market. Unfortunately for DirecTV customers, the company is planning on raising prices across both of its services in January.

    According to The Verge, satellite TV customers will see their plans go up anywhere from $1 to $10. Meanwhile, streaming TV customers will see increases ranging from $4 to $10.

    Many providers often give up channels rather than increase prices. YouTube TV recently announced it would drop its price by $15 if it loses Disney-owned channels. In contrast, DirecTV said in a statement seen by The Verge that its prices were increasing because it is committed to offering the most robust packages. 

    “While competitors continue to shrink their offerings, your DirecTV team maintains a steadfast commitment to carrying the most robust channel line-up in the industry and unrivalled [sic] leadership in premium sports and news content,” the company wrote. “In addition, we continue to invest in providing better customer service, releasing new technology upgrades that will enhance our signal reliability, and launching improved features. We are also delivering greater flexibility to watch what you want, when you want it, from virtually anywhere in the U.S.”

  • AT&T and TPG Capital Complete DirecTV Spin-Off

    AT&T and TPG Capital Complete DirecTV Spin-Off

    AT&T and TPG Capital have completed their DirecTV deal, spinning off the brand from AT&T.

    After buying DirecTV in 2015 for $48.5 billion ($67.1 billion including debt), the service lost millions of subscribers in the ensuing years. As a result, AT&T decided to spin off the satellite TV company in a deal with TPG Capital.

    The new DirecTV company will own DIRECTV, AT&T TV and U-verse video services. HBO Max, owned by AT&T’s WarnerMedia, is not included in the deal.

    AT&T will retain 70% ownership of the new company, while TPG Capital will own the remaining 30%.

  • AT&T Will Spin Off DirecTV

    AT&T Will Spin Off DirecTV

    After months of exploring a potential sale of DirecTV, AT&T has decided to spin off the satellite TV service.

    AT&T bought DirecTV for $48.5 billion ($67.1 billion including debt), in 2015, but the service has since lost millions of customers. The satellite industry has experienced difficulties as a whole, threatened by the widespread adoption of streaming TV services. Even so, DirecTV’s losses have far outpaced its rival, Dish Network. As a result, AT&T has been looking to get rid of DirecTV for some time, exploring various options, including an outright sale.

    It appears the company has, instead, opted to spin off its satellite service with the help of TPG Capital. The deal is worth a mere $16.25 billion, including debt. AT&T will receive $7.8 billion in cash, including $5.8 billion from the new DirecTV and $1.8 billion from TPG. AT&T will use the cash to help pay down its debt.

    “This agreement aligns with our investment and operational focus on connectivity and content, and the strategic businesses that are key to growing our customer relationships across 5G wireless, fiber and HBO Max. And it supports our deliberate capital allocation commitment to invest in growth areas, sustain the dividend at current levels, focus on debt reduction and restructure or monetize non-core assets,” said AT&T CEO John Stankey. “As the pay-TV industry continues to evolve, forming a new entity with TPG to operate the U.S. video business separately provides the flexibility and dedicated management focus needed to continue meeting the needs of a high-quality customer base and managing the business for profitability. TPG is the right partner for this transaction and creating a new entity is the right way to structure and manage the video business for optimum value creation.”

    AT&T will own 70% of the common equity of the new company, with TPG owning the remaining 30%.

    “We certainly didn’t expect this outcome when we closed the DirecTV acquisition in 2015,” AT&T CEO John Stankey said on a conference call, according to CNBC, although he expressed his belief the deal represents the best option for AT&T shareholders.

  • 5G Auction Blows Past $76 Billion, Shattering Estimates

    5G Auction Blows Past $76 Billion, Shattering Estimates

    The auction for 5G spectrum in the US has shattered estimates, passing $76 billion as of Monday.

    The Federal Communications Commission (FCC) is holding the auction for mid-band spectrum. The spectrum is especially valuable for wireless companies, as it is seen as the sweet spot for 5G. While low-band offers excellent range and building penetration, its speed is only marginally better than 4G LTE. High-band, also known as mmWave, offers speeds in the gigabits, but is limited by extremely short range and poor penetration. Mid-band spectrum offers speeds in excess of 1 Gbps, while still providing reasonable range and penetration.

    Verizon and AT&T are especially in need of mid-band spectrum, as neither company has the enough to bridge the gap between their low and high-band 5G networks. T-Mobile, in contrast, inherited a wealth of mid-band as a result of their merger with Sprint, making the company the one to beat in the 5G market.

    As Bloomberg points out, analysts had predicted the auction could go as high as $47 billion, a figure that is now in the distant rear-view. Verizon has been the biggest bidder so far, and will likely continue to dominate the auction. The company cannot afford to walk away without massive gains if it expects to remain competitive.

    AT&T’s need is just as dire, but the company doesn’t have the resources to spend as heavily as Verizon. Some experts believe AT&T’s recent efforts to sell DirecTV may be to raise the necessary money to purchase a meaningful share of 5G spectrum.

    While T-Mobile is the company that is currently the most spectrum rich, it may want to bolster its holdings even more, especially in cities and heavily populated areas where networks can become bogged down more easily. The company also has an interest in bidding to help drive the price up, ensuring Verizon and AT&T don’t walk away with huge swaths of spectrum for a bargain basement price.

    It remains to be seen just how high the bidding will go, but the current price gives a small glimpse into just how committed US wireless carriers are to their 5G rollouts.

  • AT&T Getting Serious About Selling DirecTV, Fielding Offers

    AT&T Getting Serious About Selling DirecTV, Fielding Offers

    AT&T is reportedly fielding offers to sell its DirecTV satellite service, as the service shrinks due to the rise of streaming options.

    AT&T bought DirecTV in 2015 for $66 billion, including debt. Since that time, however, the service has lost millions of subscribers — far more than rival Dish Network — and has increasingly become a lead weight around AT&T’s neck.

    According to the Wall Street Journal, AT&T is fielding bids in excess of $15 billion, including debt, a far cry from what the company paid five years ago. Among the potential buyers are Churchill Capital Corp. IV and private-equity firm TPG. The WSJ says the auction is already in the late stages, with a completed deal possible in early 2021.

    The TV industry has become one of the most hated industries in America in recent years, in terms of customer satisfaction. Many companies charge equipment rental fees, hidden fees and regularly hike prices after brief “introductory prices.”

    While satellite TV often scores higher in customer satisfaction than cable options, it has still been heavily impacted by streaming services. Hulu with Live TV, YouTube TV, fuboTV, Sling and, most recently, T-Mobile’s TVision are often seen as cheaper alternatives that give customers more options and control. When TVision was released, T-Mobile CEO Mike Sievert specifically emphasized no annual contracts, no exploding plans and half the cost of cable.

    AT&T’s divesture of DirecTV is just the latest example of this widespread digital transformation that is occurring.

  • T-Mobile TVision Giving Customers 30+ Free Channels

    T-Mobile TVision Giving Customers 30+ Free Channels

    T-Mobile informed TVision subscribers they will be receiving 30+ channels, normally part of the Vibe plan, for free.

    At the end of October, T-Mobile unveiled its TVision streaming service, designed to compete with the likes of YouTube TV, Hulu with Live TV, Sling and fuboTV. The company unveiled four packages, including Vibe, Live TV, Live TV+ and Live Zone.

    The Vibe plan, in particular, was seen as a high-value option, providing 30+ entertainment and lifestyle channels for just $10. It was a good option for customers who were not interested in local channels or sports. Now, T-Mobile is giving away the Vibe plan for free to customers that have one of the TVision Live subscriptions.

    T-Mobile Free Channels Email
    T-Mobile Free Channels Email

    Behind the scenes, industry experts say the promotion is a result of the legal issues and carriage disputes T-Mobile is facing over TVision. Despite the cable TV industry being one of the most hated industries in America, media companies continue to hold to the very business practices that made them so hated.

    One of those practices is channel stuffing, requiring certain packages to contain certain channels, and then forcing customers to pay for channels they don’t want. T-Mobile’s willingness to separate their channel lineup in a way that allowed customers to choose what they wanted to pay for was one of its big selling points.

    According to Variety, however, T-Mobile has had to make adjustments to prevent legal action from the media companies. For example, many media companies specify that any of their channels included in a cheaper tier must also be included in more expensive tiers. While T-Mobile viewed their Vibe plan as a standalone option, the media companies are clearly viewing it as the entry-level tier. As a result, because it has channels not included in any TVision Live plans, the media companies are crying foul.

    To T-Mobile’s credit—in the same week that Hulu and DirecTV announced price hikes—the company’s solution is simply to include the 30+ Vibe channels for free in the more expensive TVision Live plans. While the company has portrayed it as a limited-time holiday event, given its Un-carrier reputation, it’s hard to imagine T-Mobile will do anything that will be a burden to customers on the other side of its holiday deal.

    From the outset, CEO Mike Sievert characterized TVision as a loss-leader to help drive more customers to its cellular and home internet options. Hopefully the company’s holiday deal will become a permanent option, or replaced by some equally value-driven option.

  • AT&T Looking to Get Rid of DirecTV

    AT&T Looking to Get Rid of DirecTV

    AT&T is said to be pursuing a sale of DirecTV as the satellite TV service has lost ground against streaming services.

    DirecTV is one of the major satellite TV services, competing with Dish Network. AT&T acquired the service in 2015, but has lost millions of subscribers since the acquisition. Even the pandemic, and an unprecedented demand for home entertainment, has not been enough to stem the tide. Instead, users have shown a decided preference for streaming services, such as Netflix, Hulu, CBS All Access, Peacock and others.

    As a result, it appears AT&T has had enough, and is looking to sell the beleaguered service. According to The Wall Street Journal, AT&T and its advisors at Goldman Sachs, are in talks with private-equity groups.

    It remains to be seen whether a deal will be reached. Whether AT&T keeps or sells DirecTV, however, perhaps it’s time to take a page from the streaming services. AT&T and DirecTV have long been accused of overcharging, baiting and switching, and otherwise taking advantage of customers. One of the reasons streaming services have been so successful is because they deliver what users want at a reasonable price. What’s more, streaming services don’t charge for bundled equipment, equipment rentals, mystery fees or any of the other things that often define service with a TV provider.

    Who knows how successful DirecTV might be if it were more like streaming services.

  • AT&T CEO Expects Significant Growth in SVoD as DIRECTV Declines

    AT&T CEO Expects Significant Growth in SVoD as DIRECTV Declines

    AT&T CEO Randall Stephenson says that he expects to see significant growth in their SVoD business as their DIRECTV business declines. Stephensen empasized that the declining subscriber numbers for DIRECTV was something they always expected. “The traditional linear we expect to continue to decline,” he said. “We expected that when we bought DIRECTV.”

    Stephensen says that the DIRECTV acquisition was a “typical synergy deal” done to both create cashflow by extracting cost synergies and to leverage their SDoV, advertising, and mobile strategy which would have been “hard to execute” without this deal.

    Randall Stephenson, Chairman and CEO of AT&T, discusses the expected decline of DIRECTV and the projected massive growth of subscription video on demand (SVoD) in an interview with CNBC:

    Significant Growth in SVoD as DIRECTV Declines

    The results were really right in line with what we had told the street back in November. We had said we expect to see continued declines in the traditional video business and what we are doing is now investing in the new streaming service. Now that you own a large scale media company, the idea is that you can now build an SVoD, a subscription video-on-demand service, that is premium, that is unique, leveraged off the HBO content, and the Warner Brothers content. That is now where the investment is going for streaming television, an SVoD service.

    The traditional linear we expect to continue to decline. We expected that when we bought DIRECTV. We’ve generated a lot of synergies for that acquisition. It was a typical synergy deal. You buy a declining business and you extract a lot of cost synergies. People forget that within 18 months we had generated about a $3.5 billion run rate synergy in this business. It’s still generating $4 billion of cash flow. That $4 billion is now being invested in the new platforms. It’s being invested in fiber deployment and the fiber deployment is going great. In fact, our broadband business in the quarter was up around seven percent.

    We’re investing in an advertising business and since we bought DIRECTV we have stood this advertising business up. It’s a very unique business. It’s a $2 billion a year business now and it grew 26 percent last quarter. We’re investing in that and investing in the SVoD. What you’re seeing is when the investment in the traditional linear goes down you’ll see subscribers continue to go down. As we stand up the SVoD service you’re going to see significant growth over here. That’s where our excitement is. This is where we’re putting all of our focus and our investment.

    Hard to Execute SDoV Strategy Without DIRECTV

    It would have been really hard to execute this strategy had you not done DIRECTV. You needed some basis to get content delivered to mobile. The world of mobile, that’s what we were always trying to accomplish and we’ve been trying to do that for many years. We actually got that done. We got all the rights to begin distributing to mobile within months of closing DIRECTV.

    So now you own a media company and you own some great IP and you stand up a new SVoD service. Now you have built-in distribution for this SVoD, not only through your traditional DIRECTV subscribers but through your mobile subscribers. The two work hand-in-hand over the next two or three years bringing these two together standing this up and distributing.


  • AT&T / DirecTV Deal Gets Thumbs Up from FCC, with Conditions

    AT&T / DirecTV Deal Gets Thumbs Up from FCC, with Conditions

    After “careful, thorough review,” the Federal Communications Commission has given AT&T and green light to acquire DirecTV. The combined entity will boast about 26 million customers. Say hello to the new largest pay TV company in the US.

    The approval didn’t come without conditions, however.

    Here are all of the conditions the FCC placed on AT&T. They involve the expansions of AT&T’s broadband service –especially in underserved areas, as well as bits about interconnection disclosure and discriminatory usage-based practices. These are the parts that likely satisfied Netflix, which put its backing behind the merger earlier this month.

    – Fiber to the Premises (FTTP) Deployment. Recognizing that the merger reduces AT&T-DIRECTV’s incentive to deploy FTTP service, the Commission adopts as a condition of this merger the expansion of FTTP service to 12.5 million customer locations. This condition also responds to the harm of the loss of a video competitor in areas where AT&T and DIRECTV had directly competed before the merger by providing a pathway for increased competition from services that rely on broadband Internet to deliver video.

     

    – Gigabit Service to E-rate Eligible Schools and Libraries. In addition, to ensure that schools and libraries also benefit from expanded fiber deployment to consumers and institutions, the Commission is also requiring AT&T-DIRECTV to offer gigabit service to any E-rate eligible school or library where AT&T-DIRECTV deploys FTTP service.

     

    – Non-Discriminatory Usage-Based Practices. Recognizing that AT&T is the only major ISP that applies “data caps” across the board to all of its fixed broadband customers and that this merger increases the incentive of AT&T-DIRECTV to use strategies that limit consumers’ access to online video distribution services in order to favor its own video services, the Commission requires AT&T-DIRECTV, as a condition of this merger, to refrain from imposing discriminatory usage-based allowances or other discriminatory retail terms and conditions on its broadband Internet service.

     

    – Internet Interconnection Disclosure Requirements. Recognizing the importance of interconnection to the operation of online video services, the Commission also requires as a condition of this merger that AT&T-DIRECTV submit its Internet interconnection agreements so that the Commission may monitor the terms of such agreements to determine whether AT&T-DIRECTV is denying or impeding access to its networks in anticompetitive ways through the terms of these agreements.

     

    – Discounted Broadband Services for Low-Income Subscribers. While finding that the availability of better and lower priced bundles of video and broadband service is a potential benefit of the merger, the Commission also concludes that the public interest requires us to ensure that a bundle of video and broadband services is not the only competitive choice for low-income subscribers who may not be able to afford bundled services. The Commission accordingly requires as a condition of the merger that AT&T-DIRECTV make available an affordable, low-price standalone broadband service to low-income consumers in its broadband service area.

     

    – Compliance Program and Reporting. Given the important role that these conditions serve in securing the public interest benefits of the merger, the Commission requires that AT&T-DIRECTV retain both an internal company compliance officer and an independent, external compliance officer that will report and monitor, respectively, the combined entity’s compliance with all conditions of the merger.

    Now that the FCC has given the green light, the nearly $49 billion merger is a go. The US Justice Department recently concluded that the deal was not anti-competitive.

    “After an extensive investigation, we concluded that the combination of AT&T’s land-based internet and video business with DirecTV’s satellite-based video business does not pose a significant risk to competition,” said Assistant Attorney General Bill Baer of the Antitrust Division. “Our investigation benefitted from the Division’s close and constructive working relationship with the FCC. The commitments that the proposed FCC order includes, if adopted, will provide significant benefits to millions of subscribers.”

  • AT&T, DirecTV Merger Reportedly Nearing Approval

    AT&T, DirecTV Merger Reportedly Nearing Approval

    It appears to be smooth sailing for AT&T in its acquisition of DirecTV, as the merger has reportedly cleared one major hurdle and is about to clear the last.

    Reuters reports that the Department of Justice has already wrapped up its review of the deal. Bloomberg says that the DoJ imposed no conditions on the mega-merger.

    AT&T first agreed to acquire DirecTV for nearly $49 million last May.

    The DoJ’s job in merger reviews is to determine if the deals violate antitrust law – so it looks like AT&T and DirectTV are good on that front. Of course, the DoJ isn’t the only regulatory agency that the companies must assuage. They also have to worry about the Federal Communications Commission and its independent review of whether or not the deal serves the public interest.

    Reuters says that approval is coming very soon – as early as next week. It’s more likely that AT&T had to make concessions with the FCC.

    On June 29th, AT&T said it had had a talk with the FCC, wherein they discussed “the substantial, direct, and verifiable benefits that the AT&T/DIRECTV merger will deliver to tens of millions of consumers.”

    “We also discussed AT&T’s voluntary commitments, described in the record, which will provide the Commission with further assurance that the transaction will serve the public interest and deliver benefits to consumers.”

    Streaming video may play a part in said conditions. Netflix recently raised objections to the merger in its current form, saying that the deal “would result in a combined entity with increased incentive and ability to harm online video distributors and other edge-based Internet content that Applicants view as a threat to their broadband and video programming businesses.”

    The merger would create the biggest pay-TV company in the country.

    It’s possible that AT&T will have to agree to some stipulations protecting online video companies.

    The AT&T/DirecTV deal won’t create the broadband-controlling monster that the Comcast/Time Warner Cable deal would’ve created. The FCC basically killed that deal, and Net Neutrality was a major concern.

  • The AT&T/DirecTV Merger Will Likely Be Approved: Report

    The AT&T/DirecTV Merger Will Likely Be Approved: Report

    It doesn’t appear that federal regulators are going to stand in the way of AT&T’s bid to acquire DirecTV.

    According to sources quoted in the Wall Street Journal both the Justice Department and the Federal Communications Commission are almost done with their respective reviews, and they are both unlikely to block the deal.

    AT&T agreed to acquire DirecTV for nearly $49 million last May.

    From the WSJ:

    Regulators could still decide to impose conditions on the deal, which would create the largest U.S. pay TV company, but don’t appear to have serious concerns, the people said. Final approval could still be weeks away.

    The Justice Department hasn’t raised issues with the deal and doesn’t plan to block it, the people said. FCC staff are inclined to recommend the commission approve the deal with conditions, but none are expected to be unacceptable to AT&T, people familiar with the process have said.

    Streaming video may play a part in said conditions. Netflix recently raised objections to the merger in its current form, saying that the deal “would result in a combined entity with increased incentive and ability to harm online video distributors and other edge-based Internet content that Applicants view as a threat to their broadband and video programming businesses.”

    “AT&T already has a demonstrated ability to harm OVDs by leveraging its control over interconnection to degrade its own customers’ access to Netflix’s service. AT&T also has shown an interest in using data caps and usage-based pricing methods, which it can apply discriminatorily to advantage its own services. If AT&T is able to slow the development of the
    OVD industry, either by foreclosing access to broadband customers or imposing discriminatory data caps, AT&T would be able to preserve its market advantage by slowing or even reversing the shift toward competitive online video offering and away from bundled video/broadband offerings,” said Netflix in a recent letter to the FCC.

    It’s possible that AT&T would have to agree to some stipulations protecting online video companies.

    “This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes. At the same time, it creates immediate and long-term value for our shareholders,” said AT&T Chairman and CEO Randall Stephenson upon announcing the merger.

    The AT&T/DirecTV deal, while significant, won’t create the broadband-controlling beheomth that the Comcast/Time Warner Cable deal would’ve birthed. The FCC played a role in killing that deal, and Netflix and Net Neutrality was a major concern.

    Image via Keith Allison, Flickr Creative Commons

  • Netflix Doesn’t Like the AT&T/DirecTV Merger

    Netflix Doesn’t Like the AT&T/DirecTV Merger

    If AT&T’s proposed merger of DirecTV is approved, it would create the largest pay-TV provider in the country.

    And according to Netflix, the merger in its current form is bad for everyone.

    The streaming company has written a letter to the Federal Communications Commission, urging it to reject the merger “as currently proposed.”

    “The proposed merger would make AT&T the largest MVPD in the country, and potentially lead to its becoming the largest ISP in the country as well. Such market power creates new incentives and abilities to harm entities that AT&T perceives as competitive threats, and will exacerbate the anticompetitive behavior in which AT&T has already engaged. Netflix urges the Commission to reject the merger as currently proposed,” said Netflix counsel Markham Erickson in the letter.

    “If approved by the Commission, this merger would result in a combined entity with increased incentive and ability to harm online video distributors (“OVDs”) and other edge-based Internet content that Applicants view as a threat to their broadband and video programming businesses. Comcast’s withdrawal of its merger application means that, if approved, AT&T would become the nation’s largest multichannel video programming distributor (“MVPD”). After AT&T’s projected broadband investments, it could become the largest ISP as well. These two dynamics create a powerful incentive for AT&T to protect its investment in DIRECTV’s bundled programming by using its ability to harm OVDs to prevent or delay cord-cutting and cord-shaving.”

    Netflix argues that AT&T has already shows what this looks like.

    “AT&T already has a demonstrated ability to harm OVDs by leveraging its control over interconnection to degrade its own customers’ access to Netflix’s service. AT&T also has shown an interest in using data caps and usage-based pricing methods, which it can apply discriminatorily to advantage its own services. If AT&T is able to slow the development of the
    OVD industry, either by foreclosing access to broadband customers or imposing discriminatory data caps, AT&T would be able to preserve its market advantage by slowing or even reversing the shift toward competitive online video offering and away from bundled video/broadband offerings.”

    So, Netflix isn’t a fan of the merger in its current form – but what would make it happy?

    According to Ars Technica, “Netflix described the conditions it wants imposed upon the merger in a submission last September. In addition to a permanent net neutrality commitment, Netflix asked the FCC to prevent a combined AT&T/DirecTV from charging interconnection fees to Netflix and other content providers. Moreover, ‘the combined entity should be prohibited from excepting its own affiliated services from any data cap applicable to any of its services (whether fixed or mobile), Netflix wrote.”

    The FCC just got done killing Comcast’s proposed Time Warner Cable takeover. Netflix and other streaming services like it played a big part in why the FCC hated that deal.

    “Today, an online video market is emerging that offers new business models and greater consumer choice. The proposed merger would have posed an unacceptable risk to competition and innovation especially given the growing importance of high-speed broadband to online video and innovative new services,” said FCC chairman Tom Wheeler of the Comcast/TWC merger.

    AT&T and DirecTV agreed to a $48.5 billion deal last May.

  • AT&T Officially Buying DirecTV For Nearly $50 Billion

    After weeks of rumor and speculation, AT&T has officially announced that it will acquire DirecTV in a stock-and-cash transaction for $95 per share based on AT&T’s Friday closing price, putting it at $48.5 billion.

    The deal will still face regulator approval, but it has been approved unanimously by the Boards of Directors of both companies. It will be reviewed by the FCC, Department of Justice, and some states and Latin American countries. It’s also subject to DirecTV shareholder approval.

    The companies will offer consumers packages that include video, high-speed broadband and mobile service via AT&T’s 2,300 retail stores and through authorized dealers and agents of both companies.

    “This is a unique opportunity that will redefine the video entertainment industry and create a company able to offer new bundles and deliver content to consumers across multiple screens – mobile devices, TVs, laptops, cars and even airplanes. At the same time, it creates immediate and long-term value for our shareholders,” said AT&T Chairman and CEO Randall Stephenson. DIRECTV is the best option for us because they have the premier brand in pay TV, the best content relationships, and a fast-growing Latin American business. DirecTV is a great fit with AT&T and together we’ll be able to enhance innovation and provide customers new competitive choices for what they want in mobile, video and broadband services. We look forward to welcoming DirecTV’s talented people to the AT&T family.”

    DirecTV president and CEO Mike White added, “This compelling and complementary combination will bring significant benefits to all consumers, shareholders and DIRECTV employees. U.S. consumers will have access to a more competitive bundle; shareholders will benefit from the enhanced value of the combined company; and employees will have the advantage of being part of a stronger, more competitive company, well positioned to meet the evolving video and broadband needs of the 21st century marketplace.”

    AT&T says it will use the merger to expand plans to build and enhance high-speed broadband service to 15 million locations, mostly in rural areas where it doesn’t already offer it. This is expected to be completed within four years after close.

    The combined company will offer a stand-alone broadband service with speeds of at least 6 Mbps (where feasible) for those who don’t want a whole DirecTV package. Likewise, DirecTV will continue to be available on a stand-alone basis for at least three years after closing.

    The companies expect the deal to close within a year. DirecTV will remain based in El Segundo, California. More details here.

    Image via Wikimedia Commons

  • AT&T/DirecTV Deal Reportedly Just Weeks Away

    Earlier this month, reports indicated that AT&T was considering acquiring DirecTV in a deal that would be worth at least $40 billion. The merger would create a entity that would serve roughly 26 million subscribers.

    At the time, there was no indication on how far along the talks were, but sources said that DirectTV was open to deal. Now, The Wall Street Journal is reporting that we could see some sort of agreement in as little as two weeks, and it could be worth up to $50 billion.

    From the WSJ:

    AT&T Inc. is moving quickly to seal a takeover deal with DirecTV, with an agreement between the two communications giants as little as two weeks away, people familiar with the matter said.

    The two sides are discussing a deal that AT&T T -1.30% would pay for using a mix of cash and its stock, the people said. AT&T would likely pay a premium to DirecTV’s DTV +0.73% share price Monday, one of the people said.

    Bloomberg suggests that such a deal would keep the management of DirecTV running the company as a unit of AT&T. They also say that DirecTV CEO Mike White plans to retire after next year.

    For both companies, the benefits of such a merger are obvious. AT&T would get the biggest satellite TV provider in the country, while DirectTV would gain access to high-speed internet to bundle. This would make the entity much more competitive in the market–a market that may just see another huge merger approved in the near future.

    As you know, Comcast is attempting the purchase Time Warner Cable for around $45 billion. That deal is being probed not only by the Department of Justice’s Antitrust Division, but by various U.S. states as well. Whether or not that deal goes through will likely have an impact on any possible AT&T/DirecTV plans. AT&T’s last big acquisition attempt didn’t go so well.

    Neither AT&T or DirecTV is commenting.

    Image via Wikimedia Commons

  • AT&T Said To Seek DirecTV Acquisition

    First Comcast and Time Warner proposed a merger, which is still going through the regulatory rounds. Now, according to The Wall Street Journal, AT&T is considering acquiring DirecTV in a deal it says would be worth at least $40 billion.

    The report cites people familiar with the situation. WSJ’s Shalini Ramachandran and Thomas Gryta report:

    The approach has come since Comcast struck its Time Warner Cable deal in February, one of the people said. It is unclear whether the companies are in detailed talks, but another person familiar with the situation said that DirecTV would be open to a deal. The satellite TV industry is facing a slowdown in subscriber growth after years of adding customers. The pay television market in the U.S. is now mature, with about 90% of U.S. households with TV now subscribing to either cable, satellite or phone company-delivered television.

    If DirecTV loses NFL Sunday Ticket, that could hurt its subscriber growth even more. The provider struck a deal with the NFL in 2009 with an exclusive contract to last until 2014. The service gives customers access to every game, and is a popular package with fans. The offering alone has no doubt brought many subscribers DirecTV’s way as it’s not been available with any other service.

    AdAge reported in February that DirecTV was close to a contract renewal, but a deal wasn’t yet finalized. The original deal expires at the end of the 2014 season.

    Either way, it seems more likely that a deal between AT&T and DirecTV would be approved if the Comcast and Time Warner deal is, as the two entities would then be on a similar playing field. According to the Journal, AT&T+DirecTV would combine for roughly 26 million subscribers compared to Comcast+Time Warner Cable, which would serve about 30 million.

    Neither company is commenting.

    Image Wikimedia Commons

  • NFL Sunday Ticket On YouTube? Yes, Please.

    NFL Sunday Ticket On YouTube? Yes, Please.

    Before we get too far ahead of ourselves here, let’s be clear right up front. As far we know, this is not something that is currently in the cards.

    But…

    DirecTV’s contract with the NFL, which makes it the exclusive provider of NFL Sunday Ticket, which gives football fans access to every NFL game live, is set to expire at the end of next year. And plenty of service providers likely want to offer that to their customers. It is America’s most popular sport after all.

    Google and the NFL have reportedly been talking, and Sunday Ticket is said to be one of the things they talked about. Peter Kafka at All Things D reports:

    Today [Tuesday], according to sources, Google CEO Larry Page, along with YouTube content boss Robert Kyncl, met with a delegation from the NFL led by commissioner Roger Goodell. And the Sunday Ticket package was among the topics of discussion, according to people familiar with the meeting.

    According to Kafka, the NFL execs are also meeting with other Silicon Valley companies while they’re on their trip.

    So, just because the subject came up in the discussion, it’s hardly a sure thing that YouTube will get Sunday Ticket. But how great would that be? What it would mean is that all football fans would get access to their games of choice every week, regardless of what television provider they have (for a fee, of course).

    For years, fans who don’t have DirecTV have simply been out of luck. They’ve been left with no choice but to miss their games, go to friends’ (with DirecTV) houses or sports bars or turn sketchy streaming sites. Yes, there is always the possibility of actually going to the games, but obviously that’s not always feasible.

    If the offering were to come to YouTube, people could watch their games regardless of service provider, but also on any device of their choosing – their television, their tablet, their smartphone, etc.

    The NFL has to know about the cord cutting trend, and YouTube would be able to provide its games with an audience regardless of whether or not they have cable, satellite, or just internet.

    For Google, who has not historically had a lot of luck in the TV business, this would be the perfect thing to jump start that. The company also happens to be trying to get a legitimate TV service off the ground. What better foundation than all of the NFL’s games?

    For DirecTV, losing the offering would be a huge blow. It could also significantly hurt sports bar business on Sundays.

    For fans, however, NFL Sunday Ticket on YouTube (or a similar online service with apps on as many devices as possible) would be a dream come true.

  • Pac-12 Network Turns To Social Media To Challenge DirecTV

    The televising of college football is big, big business. Remember all that college sports conference realignment stuff? That was driven by college football, as conference members scrambled over each other in an effort to align themselves with a conference that has a strong television deal. The development of conference channels also became a vogue thing to do, with, most notably, the SEC’s partnership with ESPN.

    That being said, not all things are equal in the land of securing a broadcast outlet when these conferences launch their channels. Much like the CBS/Time Warner dispute–which, should be noted, is an argument over money that only hurts the subscribers–one college athletic conference is having some trouble getting on DirecTV, and so, they’ve decided to fight back by using a little bit of social media. The conference in question, the Pac-12, has come up with an idea suggesting fans of the conference’s teams who have DirecTV should cancel their subscription and find a provider that carries the Pac-12 Channel.

    The details were revealed in a release posted at the Pac-12’s official site:

    Entering its second season of covering Pac-12 football, Pac-12 Networks is distributed on more than 50 video providers across the country, including three of the four largest. Despite being offered the same deal that all of the other providers have agreed to, DirecTV remains unwilling to reach an agreement, and the “Compare” campaign is the latest step by Pac-12 Networks to urge fans to drop DirecTV and switch to another provider.

    The campaign consists of 30-second spots that poke fun at DirecTV’s decision to not carry the network. Here are a few of the videos being used:


    Seeing how there are 12 teams in the Pac-12, there are 9 more videos, all of which make a play on the team’s mascot. Well, except for the Utah copy. Instead of showing Utes, they just show the state of Utah. Keep it simple, and all that. If you’d like to see the rest of the videos, you can so at the Pac-12’s site. With that in mind, how many Pac-12 fans would have to leave DirecTV before they reconsidered?

  • Peyton & Eli Manning Rap, Mock Alexander Graham Bell’s Death In New DirecTV Ad

    DirecTV has a new “Football on Your Phone” ad out today, and it features the Manning brothers rapping about just that. As one who would fully expect for this to be incredibly unfunny, I have to admit I was pleasantly surprised.

    Also, Eli doesn’t care what Alexander Graham Bell thinks, because he’s dead.

    I would imagine we’ll be seeing a condensed version of this on television, which will inevitably be way overplayed. Something tells me the Graham Bell part won’t be in the edited version.

  • DirecTV Gets Starz Play And Encore Play

    In October, Starz announced its Starz Play and Encore Play online services, which would provide online streaming access to movies and shows to paying subscribes off the premium channels. Today, Starz announced that it has launched the services for DirecTV customers.

    Customers who subscribe to the channels can use the Starz Play and Encore Play apps for iPhone, iPad and iPod Touch. The apps themselves are free. There are also web interfaces for the offerings at starzplay.com and encoreplay.com.

    “We are very pleased to expand our relationship with DirecTVand add Starz Play and Encore Play to the suite of premium offerings provided by one of our largest customers,” said Ed Huguez , President of Affiliate Distribution for Starz Entertainment. “Starz and Encore subscription performance on DirecTV is consistently strong with a loyal customer base. Now our subscribers on DirecTV – ranging from tech savvy to novices – are sure to enjoy the added benefit of a terrific user-experience of the Play services as part of their monthly subscriptions.”

    Starz Play offers users about 400 monthly selections, including 300 movies from Disney, Sony and others. There are also 100 episodes of Starz exclusives like Spartacus, Magic City and Boss. Encore Play offers about 900 monthly selections, including 300 movies and “select originals”.

    The services come with resume functionality, so you can start watching something and pick it up where you left off later. There are also parental controls.