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[May 04, 2014]

"Media merger mania" effect from Comcast-TWC deal? [Radio and Television Business Report (RBR-TVBR)]

(Radio and Television Business Report (RBR-TVBR) Via Acquire Media NewsEdge) Comcast’s move to acquire Time Warner Cable is creating a ripple effect that could transform the MVPD industry. The latest n: The floating of a possible purchase of satellite provider DirecTV by telecom giant AT&T, reports USA Today.


"Among other moves or speculation since Comcast announced its $45 billion bid for Time Warner Cable two months ago: DirecTV and competitor Dish Network have talked about merging, according to a Bloomberg report; Netflix announced connection deals with Verizon and Comcast; and Apple had reportedly approached Comcast, too.

All the speculation suggests that behind the scenes, the biggest pay-TV players are making preparations for a transformed marketplace should the Comcast-Time Warner Cable deal be approved. “The writing is on the wall that these kinds of partnerships have to get made,” Digital World Research analyst P.J. McNealy told USA Today in the report.

AT&T’s bid to augment its current “video footprint” of about 6 million customers for its U-Verse fiber-optic delivered pay-TV service with DirecTV’s 20 million reflects the “early stages of industry consolidation and technology transition and a response to the demand for more video,” says Michael Paxton, cable industry analyst for SNL Kagan.

See the full USA Today story here.

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