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story category Murdoch: Gov't Would Approve DirecTV/Echostar
Echostar CEO Ergen would want to run things
(old news - 10:12AM Monday Jul 24 2006)
tags: satellite · business
Speculation continues over a merger between the nation's two largest satellite providers, DirecTV and Echostar; News Corp.'s Rupert Murdoch stating the merger would likely be approved by the government if it did indeed happen. Murdoch has stated that if there were to be hiccups in the deal, they could occur if CEO Charlie Ergen insisted on running the company "at least for awhile."

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Forums » Murdoch: Gov't Would Approve DirecTV/Echostar
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oliphant
I Have 8 Boobies
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join:2004-11-26
Corona, CA


1 edit

I wasn't happy with Dish quality but liked Ergen

but I did like how Ergen was a bit of a scrapper when it came to programming negotiations. He wouldn't hesitate to pull programming off the air if the price wasn't right which helped keep their prices lower than everyone else.

That said I don't want a merger. Competition is a good thing and both E* and D* have their good and bad points and from the looks of it both are doing pretty well. For many people in the boonies these are the only two competitors they have and a merger would bring nothing new for consumers but the possibility of higher prices.

No thanks. Enough damage has been done by media mergers (like my poor ATTB franchise being run into the ground by Comcrap) and we don't need any more.

cdru
Go Colts
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join:2003-05-14
Fort Wayne, IN

Re: I wasn't happy with Dish quality but liked Ergen

said by oliphant See Profile :

but I did like how Ergen was a bit of a scrapper when it came to programming negotiations. He wouldn't hesitate too much to pull programming off the air if the price wasn't right which helped keep their prices lower that everyone else.
I wouldn't say is a scrapper. I would say that he is a good business man. I would never want to play poker with him. Unfortunately most cable providers happily take whatever price increases and just pass them off to the customers. I'm happy that Charlie at least resists the constant increases.

Increases are inevitable. Charlie just makes sure that those increases are happening yearly just because the providers can get away with it.

That said I don't want a merger. Competition is a good thing and both E* and D* have their good and bad points and from the looks of it both are doing pretty well. For many people in the boonies these are the only two competitors they have and a merger would bring nothing new for consumers but the possibility of higher prices.
I have mixed feelings. Yes a merger would eliminate competition in some areas. But not really as much as you think. Neither provider has regional pricing. All pricing is done at the national level. So even if the merged company became the only provider in a rural area, they would be still competing on price across the nation with cable companies.

Programming for the most part is very similar between the two with the national offerings. Both have channels that are on them exclusively that the other probably wouldn't mind having as well. There is a massive amount of bandwidth that is wasted between the two duplicating channels being broadcasted. A merger would free up a lot of badly needed bandwidth to enable HD programming for most or all markets once the MPEG4 switchover is complete.

The reduction in duplication of services would also mean that costs related to providing those services would be reduced as well. Unlike cable when you merge to suddenly have 2x the physical plant to maintain, with satellite it costs just as much to broadcast to one person as it does to 1 million (subscriber costs excluded obviously).
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TKJunkMail
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Murdoch sure confident on merger not anti-competitive

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."
I am not as confident that the gov't would approve this merger as Murdoch is. But I do agree with him that the merger would do little to change the competitive landscape. Sat TV is competing with cable for the most part and not so much with each other. And it sure looks like Murdoch doesn't buy into the duopoly concept, claiming there is plenty competition for the video dollar. But I expect that cable and telco will lobby against this in Washington, especially cable.
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1 edit

Re: Murdoch sure confident on merger not anti-competitive

I listened to a stock analyst who was a an expert in this field and he said all of these rumors came out of a meeting last week of investment people and this was a rumor they started to justify their expense accounts. He said the bottom line it will not happen, period.
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DeadSurvivor
Maestro Of Machismo

join:2006-07-24
Tampa, FL

I Feel Bad For The People In Areas That Depend On Satellite For Television, With No Other Competition.

My Opinion Is For The Merger. The Fight Is Pretty Much Narrowed Down To Cable vs. Satellite vs. Telcos, With Not Much Competition Within Each Category (At Least Here In Tampa). I Think It Would Help Lower Prices, Not By Much But By Some.

slowandpainful

@verizon.net

death

...and that wirless competitive wimax will die a slow and painful death...

anon56

@mindspring.com

wimax + satellite = sub par to cable

murdoch wants to add wimax to his bag of tricks you idiot. havent you been reading?!?!?!

guhuna
R.I.P Mike
Premium
join:2001-03-31
Brentwood, CA

Well

If they merge, Comcast here I come.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

In related news...

...Echostar's Charlie Ergen stated that merger would likely be approved by the government if it did indeed happen. Ergen has state that if there were to be hiccups in the deal, they could occur if CEO Rupert Murdoch insisted on running the company "at least for a while".

Gosh, two giant satellite providers and one says there would be a problem if the other CEO was in charge. I wonder who Murdoch would recommend be in charge of running the merged company.
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antwanp
Beyond FM, Beyond AM, XM Satellite Radio
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Cedar Hill, TX
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BSkyB Merger...

Damn, I was kinda hoping that Murdoch would go ahead an merge his DirecTV properites with the BSkyB properties in the UK. Being in London a few months ago with a relative that had BSkyB, I loved the interactive news and such. DirecTV has been kinda slow releasing the "Active" programming to the H-20 MPEG 4 recievers.

-Antwan L.
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CPUYODA

join:2003-01-25
Johnson City, TN

Go Netflix!

If they merge,Ill drop Charlie......and upgrade my NF account to 8 out ata time and laugh....

I can get CNN online,I can get most shows on DVD.....why bother with cable anymore?
BigMac777

join:2001-07-21
Green Valley, AZ
·Qwest.net

Re: Go Netflix!

The merger was turned down once by the Government. Last year Charlie was going to buy Directv from the previous owners. The Gov said no way, you can not have both companies under your thumb. It would eliminate the comp.
So I don't think it will ever happen without a huge court fight against the Gov. And I would be on Charlie's side. They can't tell him no and then tell Rupert yes. Charlie would sue the Government for unfair treatment and win that war and battle.
Forums » Murdoch: Gov't Would Approve DirecTV/Echostar


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