Now combining the two major U.S. pay TV satellite
providers, DirecTV says its merger with Dish Media will “incentivize programmers” to allow it to sell smaller TV network packages at lower prices.
The deal will give DirecTV/Dish
greater scale -- amassing an industry-leading 20 million among traditional/legacy pay TV operators (cable, satellite, telco, and virtual).
DirecTV recently struck a deal with Walt Disney that
it says will allow it to offer smaller TV network packages to consumers at lower prices.
Monday's announcement says DirecTV will buy Dish/Sling from its parent Echostar for $1.00 plus the
assumption of $9.75 billion in Dish Media debt. At the same time, the 30% minority DirecTV owner -- the TPG Group -- will buy out AT&T majority $70 stake for $7.6 billion, according to
reports.
In a release, DirecTV notes that the pressures on the pay TV business are “highly competitive” -- with streaming services owned by large technology and programming
companies with “subscription numbers that far exceed those of pay TV distributors.”
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DirecTV/Dish says it has lost a collective 63% of their satellite customers over
the past eight years -- with traditional pay TV subscribers of U.S. households under 50%.
The company will continue to be led by Bill Morrow, chief executive officer of DirecTV, and Ray
Carpenter, its chief financial officer.
DirecTV says the deal will allow Echostar to continue to strengthen its positions in the wireless business -- through its Boost Mobile brand -- which it
now says is the fourth largest U.S. carrier.