DirecTV/Echostar Merger Rejected

[David Meek]

The EchoStar/DirecTV merger has been rejected by Michael Powell and the FCC. Full story here.




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[woodman]

What a sad, sad day for America ... and a sad commentary on the state of the union. Money and power rule the day (as they generally do), and the poor consumer "takes it in the shorts" once again! I'll bet that our founding fathers would be appalled at what's become of their vision of a nation with a government "Of the people - By the people - For the people". Shall not perish from the earth? Sorry, gents ... it has! It's been replaced by a government - Of Big business - By Big business - For Big business!




woodman

[Lex]

Woodman, well, you make a good point. Control though not good, is sometimes a necessary evil. But you say it's run by big business, for big business. I ask you, what do you think each of these satellite broadcasters are? Small business? I hardly think so.

I too would be concerned about the effects of allowing 90% of the country's satellite services to be served by one organization. If they want to go up in price, they simple say, well you take what we give you, or you go back to cable, if it's available where you are. I for one, think the only monopoly's should be natural monopolies. Water, Electricity, utility monopolies. Heck, I don't even like those, but I realize the chances of having multiple lines everywhere doesn't make sense.

He says it is hard to know if the merger is against the public interest unless it is allowed to move forward.

As far as Adam Their's comment above, well duh, that's true, but what if it is allowed to go on and they do become a totalitarian monopolistic organization. What do you do then? Do you have the power to split them back up? Not to likely to happen. Look at the Microsoft case.

It's not just like you can bring a monopoly suit against them and say, yeah, anyone else that wants in the business can get in. Who's going to launch a 9 billion dollar satellite?

It would be pretty naeive to think DirecTV or any other business won't chop your nuts off, given opportunity, . I for one am not so naeive. Probably no one knows about this, but before HTG, Mats and I were researching putting together a site called DirecTVGuide. We actually owned the domain at one time. I was having difficulty getting the information we needed, inexpensively enough to be viable, so I took the proposal to DirecTV, via email, since no one would talk on the phone.

Not 6 months after we pitched our idea, DirecTV came out with "DirecTV, The Guide". Yes, it was print media, but don't you think it's possibly they took my idea, and capitalized on it? No one even so much as sent us a response. So, the idea, that these people are not big hungry business, just doesn't fly with me. In fact, at times, I have a hard time keeping DirecTV, at the thought of supporting them.

Oh, did I mention that not long after my pitch, DTV purchased the other URL, a .net that we didn't get? Are you aware that DirecTV recently raised the rates on the limited package to within like 3-4 dollars of the full normal package? Funny, they didn't raise that one, but they said their costs went up.

Well, maybe. But it's just another example of well, we gotcha, you gonna take your dish down, or take our friendly strong arm approach to getting you to take the higher priced package with a bunch of sh*t, you don't want?

It likely went something like this. Say, these folks on the minimum package, they all got their dishes, equipment, they are dependent on us. If we raise their rates 5-6 bucks, and make it just barely cheaper than the next package, we not only increase revenue 5 X whatever number, but many will convert, so we get even 8 or more X whatever number. I ask you, is that a move that a business makes that is concerned about the consumer???

So, I find it hard to believe, that the consumer will be the one to win in the end with this merger. I say kudos, you did the right thing, make them compete. Competition, it's the life blood of american business.

Lex

[KS]

This was a tough one for everyone. The merged company would have been without real competition, which of course has a ton of negatives. Murdock (spelling?) was the other bidder and that is even scarier. He has stated that his FOX network will never offer 1080i, that 480p is silly but he did that to keep the nuts of his back. I don't know where all of this will go but I think the market will find a direction.

As far as big business controlling our government I'm afraid I'm a little more cynical. I don't care how far you want to go back in History I don't think there was ever a time when power and money didn't rule the land. Sad but true.

Ken

[woodman]

Woodman, well, you make a good point. Control though not good, is sometimes a necessary evil. But you say it's run by big business, for big business. I ask you, what do you think each of these satellite broadcasters are? Small business? I hardly think so."

Both Echostar and DirecTV are both relatively small businesses when compared to the evil giant called "cable". Even if the two were combined, they'd still be David challenging Goliath.

"I too would be concerned about the effects of allowing 90% of the country's satellite services to be served by one organization. If they want to go up in price, they simple say, well you take what we give you, or you go back to cable, if it's available where you are. I for one, think the only monopoly's should be natural monopolies. Water, Electricity, utility monopolies. Heck, I don't even like those, but I realize the chances of having multiple lines everywhere doesn't make sense."

That's what is so ludicrous about all of these arguments ... "we mustn't have a satellite monopoly". What do you suppose "cable" is other than a monopoly?

"So, I find it hard to believe, that the consumer will be the one to win in the end with this merger. I say kudos, you did the right thing, make them compete. Competition, it's the life blood of american business."

Yes it is - but what is really needed is some real competition for the cable industry to face, and NOT merely competition between satellite providers. Without the merger, Dish and DirecTV will continue competing against each other, while "cable" goes blissfully along it's merry way - whistling a happy tune!

Don't kid yourself into thinking that the federal bureacracy acted in what they sincerely believed was in the best interest of consumers, although that's precisely what they are pledged to do. They were either "convinced" by a little of the old
payola or they were brainwashed (as were many consumers) by propaganda that emanated from Rupert Murdoch and his News Corp. along with the cable industry and the NAB - all of which campaigned vigorously against this merger.

woodman

P.S. I could have warned you about DirecTV years and years ago - what an unscrupulous bunch they were (and still are), but you didn't ask me. I have a much more benign opinion about Echostar however, and I don't think for even a second that they're out to screw the consumer any way they can - far from it. Charlie Ergen is NOT the devil in sheep's clothing, IMO. He and I have our differences, but he also has my deepest respect.