# Will Both DISH And Direct Be Able To Remain Profitable For The Near Future?



## Jim148 (Jun 22, 2004)

As posted above, I am just wondering what the future looks like for both DISH and Direct. I recall when there were still two competing satellite radios services. Of course, we know that XM and Sirius are now together. I haven't heard anything lately, but it seems like the argument several years back was that neither was very profitable and to merge them might make them profitable.

Could that be the future for DISH And Direct TV? It probably is like comparing apples to oranges, but with a lot more choices than ever for video entertainment, I just wonder what the future is. Granted, many people can't get cable. My family and I are in the situation. I was happy to get DISH when I did. More recently, with Roku and a Netflix subscription, it seems harder and harder to justify the cost.


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## Stewart Vernon (Jan 7, 2005)

It is apples vs oranges in a lot of ways.

Sirius and XM face a LOT of stiff competition from free OTA radio. Sure, there are no commercials and a lot of "channels" on Sirius/XM but the songs that play on free radio are the same songs... and while there might be commercials between songs, the songs themselves play uninterrupted... and for the most part all songs get some play on some free radio station on most days.

With TV... there is a lot of content not available via free OTA so while you can watch a lot of TV for free you can't watch ALL TV for free.

Sirius and XM weren't just competing with each other (before the merger) but they were competing with a good free product. So asking the casual listener to pay for stuff he can get free doesn't fly... but you can entice the casual TV viewer to pay for some TV that he can't otherwise get for free.

Long term? Who knows... people are fickle. Short term? I see nothing in the way of dire news for Dish or DirecTV or cable for that matter.


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## James Long (Apr 17, 2003)

DirecTV is being bought by AT&T ... which should end any thoughts of a DISH/DirecTV merger.

For the near future ... both companies have managed to post profits. DISH has posted profitable years every year since 2002 (where they paid $690 in merger termination costs for the last attempt to merge with DirecTV. DISH has not posted a negative quarter since 2Q 13 (one of only two negative quarters in the past decade). DirecTV's profits continue to grow year after year and were over $4.4 billion in 2013 (which is part of the reason why AT&T wants to buy DirecTV - for the profits!).

Will the two companies remain profitable for the near future? I think so.


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## harsh (Jun 15, 2003)

The near future shouldn't be a problem for either company. I'd say they both need to pin down a broadband partner within the next five years to remain relvant. While DIRECTV seems to be well on their way, it is by no means a foregone conclusion (even if they are answering the phone as AT&T DIRECTV already). The combination of their FCC investigation with that of Comcast and TWC will slow things down at the very least.

DISH is probably in a better position to survive long term with their inroads into IPTV in the US (not ignoring that DIRECTV has announced their Ya Veo Hispanic IPTV service) and the wireless bandwidth that they bring to the merger table.


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## CraigerM (Apr 15, 2014)

Wasn't their some talk of DTV and Dish not surviving because they don't have their own broadband and can't offer their own bundle packages like cable? If so I see AT&T as saving it. Unless AT&T runs DTV into ground and doesn't keep it up date. I wonder if the FC could also let AT&T get Dish and save them also? Or would that would that be too much?


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## mrknowitall526 (Nov 19, 2014)

CraigerM said:


> Wasn't their some talk of DTV and Dish not surviving because they don't have their own broadband and can't offer their own bundle packages like cable? If so I see AT&T as saving it. Unless AT&T runs DTV into ground and doesn't keep it up date. I wonder if the FC could also let AT&T get Dish and save them also? Or would that would that be too much?


I think the Telco DSL and POTS bundling is working out quite well for both satcos. With 20+ million subscribers, I don't see Directv going anywhere anytime soon.


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## slice1900 (Feb 14, 2013)

mrknowitall526 said:


> I think the Telco DSL and POTS bundling is working out quite well for both satcos. With 20+ million subscribers, I don't see Directv going anywhere anytime soon.


A pitiful $5 savings on a "bundle" with another company can't come close to competing with the kind of deals you can get when you bundle with cable providers. That should change for Directv once AT&T owns them. Dish will have to roll their own internet offering using the spectrum they hold. That will take years and cost billions, unless they get a head start by buying one of the weaklings like US Cellular.


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## Stewart Vernon (Jan 7, 2005)

I don't see how bundles will be the "way of the future" with people talking about "cutting cords" all the time.

If you bundle your cable/satellite TV with your internet or phone service then you not only have programming bundles but you have tied your connectivity with your TV... and when people complain, they usually complain about not being forced to buy things they don't want in order to get something else.

So... why would you want to bundle your TV with your internet?

IF there ever is a movement to "cord cut" then companies providing bundles will lose twice as much, if you ask me... because if you're with a merged ATT/DirecTV and you decide to cut your TV cord, are you going to stay with ATT for your Internet and have them hammering at you for DirecTV all the time? Or worse, have them throttle your Internet streaming or have bandwidth caps that restrict your non-ATT/DirecTV viewing?

I would be wary about moves to consolidate multiple-services in "one stop shopping" if you are someone already complaining that your payTV bill is too high because of bundling of channels. Imagine not only your channels bundled but all your services as well... kind of like how it is hard to buy a phone that doesn't play music and take pictures... they make it tougher to buy "just" a phone if that's all you want.


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## ground_pounder (Aug 15, 2014)

I don't think they will be competitive with services such as live streaming services suck as Netflix pandora


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## harsh (Jun 15, 2003)

The sticking point with live streaming will surely be live events (not just sports). For the networks, the customers are their advertisers and their carriers and their carriers aren't likely to want to give up their share (unless the networks pay them a commission for streamed views).


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## James Long (Apr 17, 2003)

That is the way both companies are going ... DISH through Sling TV and AT&T through their future OTT offering (after purchasing DirecTV and their customer base).

Packages of channels that are paid for the entire month whether the content is watched or not. The same deal one gets with a traditional cable or satellite subscription, delivered to your OTT device. (Payment whether people watch or not being the key to keeping the money flowing to content providers during and after the transition to newer delivery systems.)


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## scooper (Apr 22, 2002)

About the "plain flip phone' - you ain't kidding about them being "hard to find". In december, I started the process to move from AT&T Go phone to Verizon's equivalent - Took some digging around the store to find what I wanted - a basic Samsung Gusto 3 flip phone.


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