DaveNJ
No Fear
join:1999-09-01
New Jersey
 ·Comcast
·Patriot Media
| reply to Dogfather
Re: no more satellite radio competition, why not tv?
said by Dogfather  :Because neither satellite radio company was profitable, not even close. Both Dish Network and DirecTV are profitable and despite the subscriber losses, profit for Dish Network is up in the 2Q as was DirecTV. If Dish and Direct are profitable and sustainable they shouldnt be allowed to merge. Satellite radio wasnt and it needed to merge to survive. Why doesn't Dish buy Sirius XM ?
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“Say no to fear. Don’t let anxiety crush your life. Live life free and unfettered.”
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Dogfather
Premium
join:2007-12-26
Laguna Hills, CA
·Cox HSI
 ·Verizon FIOS
 ·Cox VOIP
·ViaTalk
·RoadRunner Cable
 ·MegaPath
·Verizon west (ex G..
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| said by DaveNJ :Why doesn't Dish buy Sirius XM ? I doubt Mel would be that interested. Sirius XM now has more subscribers than any company other than Comcast. |
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DaveNJ
No Fear
join:1999-09-01
New Jersey
·Comcast
·Patriot Media
| wait read this ! dang
»www.fmqb.com/article.asp?id=827268&spid=1314
Would Mel Sell Sirius XM Radio?
August 6, 2008
In a new interview with the New York Times, Sirius XM CEO Mel Karmazin floats the idea that once the merged satcaster turns a profit, he could flip the company and sell it off. Karmazin says that his goal is to turn Sirius XM into a profitable company, which could happen in just a year or two, "then we can argue about what the company is worth."
Karmazin suggests that he could then sell off the satcaster once it is profitable. "I’m not a visionary; I’m an operator,” he told the Times. "And I’ve been a seller. The bankers all want the next transaction."
Discussing the upcoming cost cutting at the merged satcaster, Karmazin said he aims to cut approximately $400 million in annual costs and half-jokes that "When I became the CEO of CBS, the first thing I did was sell the artwork."
Karmazin also discussed the recently completed merger, saying that the outcry from terrestrial radio and the NAB against it was "the best thing that happened," because it proved his argument that satellite radio was indeed their competition.
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“Say no to fear. Don’t let anxiety crush your life. Live life free and unfettered.”
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Dogfather
Premium
join:2007-12-26
Laguna Hills, CA
1 edit | Crap. Hopefully the next company won't ruin it like Infinity got ruined with the lame Free FM and Jack FM cookie cutter formats. |
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
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| reply to DaveNJ
said by DaveNJ :If Dish and Direct are profitable and sustainable they shouldnt be allowed to merge. Hmmm. SBC and Bellsouth was profitable. They merged. Citi merged with Travellers.... etc etc. I don't think profitable is really a standard they use.
They weigh in on competition. A merger of DBS would create one provider for rural subs--- not so good.... *but* DBS is facing STRONG competion from Telco and Cable offerings that they have a hard time competing with due to the fact they cannot offer other services to sweeten the pot. (IE Bundles.) A stronger DBS competitor here would be good for these consumers.
SO, the argument could go either way.
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) |
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Corydon
Cultivant son jardin
Premium
join:2008-02-18
Denver, CO
clubs:
·Comcast
| I don't see how a merger would do much of anything to change your analysis. The DBS company would still face competition from cable (and more and more, telcos).
Sure they could save some money by eliminating positions. Sure they might make a bit more by putting more of a squeeze on rural customers who have nowhere else to go.
But they still will not be able to offer a viable bundle alternative and would end up getting squeezed by triple play companies who can.
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"Think for yourselves and let others enjoy the privilege to do so too." |
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
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| The advantages I see are:
1) Bandwith. They would gain control of both companies satellite spectrum. Result: They could dump duplicate services and use the bandwidth to bring more channels, more HD, less compression, etc etc
2) Numbers of subscribers. With a larger group of subscribers, it gives them more clout with the content providers--- ie puts them in a better position to negotiate on prices. If they can keep programming costs lower, then they can compete better on price. (And still remain profitable.)
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"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) |
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fiberguy
My views are my own.
Premium
join:2005-05-20 | reply to DaveNJ
Profitability has nothing to do with it. There is competition issues at hand.. They have cable and phone to compete with, and sometimes small muni systems. |
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NetLarry
join:2007-03-18
Johnstown, PA
| reply to KrK
DirecTV does have bundles of a sort; they have partnered with Verizon (Triple play - phone, DSL and DirecTV). But it's true that won't last long-term; Verizon only uses it as a stopgap measure to prevent subscriber loss to the cable companies. Once FIOS is expanded to a certain coverage percentage we can look for Verizon to end their partnership (and customer discount). From what I've heard from Verizon contacted call center employees, they've already made the bundle an "honor do not offer" deal. |
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