Why All Those TV Company Mergers?

BuzzFeed Business, Tuesday, July 2, 2013 2:14 PM

Firms in every single category of the TV distribution biz are in acquisition/merger mode right now, because of three factors "related to content: It’s costing more to acquire; it’s available on increasingly more platforms; and retransmission fees to broadcast it are growing," writes Peter Lauria. End result of this trend probably won't be good for consumers, who may wind up "paying fewer companies more money for less services."

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2 comments about "Why All Those TV Company Mergers?".

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Mark Aitken from Sinclair Broadcast Group, July 3, 2013 at 4:25 p.m.
Actually, I don't believe that Peter Lauria has a figs notion of what is really behind the TV Broadcast Industry consolidation that is underway. Personally, I believe that one of the most profound benefits to the American public will be fully economic in the broadest sense. I suppose that there are those that believe having AT&T and Verizon owning and running all of the services supported by spectrum though their accounts is a good thing, but I am more than a bit skeptical on that one. I believe that in the future world, where Broadcasters have a competitive platform, the best values get driven by us. Just one man's opinion...
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Dave Morgan from Simulmedia, July 3, 2013 at 4:49 p.m.

My take is as the TV eco-system becomes increasingly digital and fragmented, monopoly distributors - those with exclusivity by contract or government license - face increasing pressure on margins and thus need to consolidate to better leverage their cost structures and to gain maximum negotiating leverage over their content owner/packager partners.