Dish And DirecTV Figure If XM And Sirius Can Merge...

from the try-try-again dept

You may remember back in 2001 that EchoStar, then owners of the DISH Network, tried to buy DirecTV from then owner Hughes (who was owned by GM at the time). However, after the Justice Department said no to the deal over antitrust concerns, it fell apart. However, the rumors going around are that the two companies (now just DISH Network and DirecTV, sans various parent companies) are thinking about trying again. Apparently, they believe that the regulatory and competitive environment that doomed round 1 wouldn't happen in round 2. And, of course, this time around, they can point to the fact that the two satellite radio systems, XM and Sirius, were allowed to merge (even if it took a year and a half).
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Filed Under: antitrust, mergers, satellite tv
Companies: directv, dish network

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  1. identicon
    moe, 7 Aug 2008 @ 12:25am

    Not quite the same

    The Sat TV and Sat Radio markets isn't a 1 to 1 comparison.

    For radio, no matter where you go in the US (except way out in the boonies) you can get over the air AM and FM broadcasts. You also have home, auto, and portable audio players that have tuners, play CDs, or digital media.

    For TV, you can get over the air broadcasts of a few channels. At home, you can get at least one cable company and many places only have one cable provider. At home you can play video content from DVDs but the delay is considerable. Auto and portable video is just beginning to get started but it's not prevalent - count how many sets of headphones you see compared to people watching video on the go.

    I haven't yet decided exactly where I stand on this issue, but comparing the radio and tv markets as if they were one and the same isn't correct.

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