Based on news reports, DirecTV and Dish Network are talking about a merger again. Yet MoffettNathanson's Craig Moffett noted Monday that such a deal would likely not face big regulatory challenges, and synergies might be limited. The satellite fleets have different scrambling technology, so synergy would come only after replacing one or another's set-top boxes, he said. There also isn't much churn to be eliminated from customers back and forth between the two companies, as both see few gross additions. A merger "clearly should" happen, given the secular decline of their subscriber bases, "but it would be a mistake to overestimate its importance."
The blackout of Disney broadcast networks and linear channels on DirecTV's satellite and streaming systems ended Saturday as the two reached a distribution deal. DirecTV said the agreement included the ability to offer genre-specific packages such as Disney linear networks. In addition, Disney's streaming services will be included in some DirecTV packages as will distribution rights for Disney's upcoming ESPN streaming service at no additional cost to DirecTV subscribers. DirecTV said Monday its bad-faith negotiation complaint lodged against Disney with the FCC remains active (see 2409090003).
The Charter Communications-Warner Bros. Discovery distribution deal announced last week (see 2409120002) is a win-win for the companies, MoffettNathanson said. WBD secured a critical distribution partner and seemingly avoided having to settle for smaller fees for TNT, as was expected, while Charter can include Max and Discovery+ for its subscribers at no extra cost and completes a free suite of direct-to-consumer streaming services in its bundle, MoffettNathanson said. WBD will likely use the Charter agreement as a template in forthcoming affiliate fee deals, but it's uncertain Comcast and DirecTV have different negotiating priorities from Charter, it said.
Warner Bros. Discovery and Charter Communications have inked a multiyear distribution agreement that ties together linear video with streaming services, the two said Thursday. Under the agreement, Charter's Spectrum TV Select subscribers receive Discovery+ and ad-supported Max for free. The agreement also renews Spectrum's carriage of WBD's linear networks. WBD CEO David Zaslav said the companies "did this agreement together nearly a year early to set a framework for the future and to provide more consumers access to our unparalleled content offering while giving the industry more resilience as it evolves." Charter in the past 12 months has signed similar deals involving streaming and linear channels with programmers including Disney (see 2309110034), AMC Networks and Paramount Global.
The DirecTV-Disney blackout (see 2409090003) illustrates the unsustainable two-tiered system of linear video regulation, with rules for some but not all operators, FCC Commissioner Nathan Simington said Thursday. "We must balance the scales," he said, urging that the FCC in the future "either unleash the video marketplace from outdated rules or balance it with smart and targeted reforms." He added, "What cannot persist is a system that entrenches marketplace power at the expense of the consumer."
DirecTV and Disney are pointing fingers at each other after rejecting offers to temporarily restore content during their carriage agreement fight. Subscribers have lacked Disney content since Sept. 1 (see 2409090003). Disney rejected a request for a carriage agreement extension that would return all Disney channels to DirecTV customers through Monday, DirecTV said Tuesday. Disney said it "remain[s] at the table negotiating with DirecTV and the restoration of our programming to their subscribers is completely within their control." Disney said DirecTV rejected a three-hour feed of NBC News coverage of Tuesday night's presidential debate. DirecTV said the arrangement would confuse subscribers.
It's clear sports drives the streaming TV market, nScreenMedia's Colin Dixon blogged Sunday. Data indicates YouTube TV's growth is seasonal, swelling during the NFL season, he said. It's "a no-brainer" for NFL fans to cancel YouTube TV at the end of the season, as they can save more than $500 a year that way, he blogged. That almost half of this season's NFL games will be available to stream without a traditional pay-TV channel bundle -- and 20 contests will be exclusively on streaming platforms -- also shows how sports is driving streaming TV, Dixon added.
Petitions to deny Skydance’s proposed $8 billion purchase of Paramount Global and its 28 CBS-owned TV stations are due Oct. 7 in docket 24-275, said an FCC public notice Friday establishing a pleading cycle for filings on the deal. Oppositions to the petitions are due Oct. 27, replies Nov. 1. Announced in July (see 2407080025), the transaction isn’t expected to run into regulatory hurdles. Paramount has said the deal is expected to close by September 2025.
ESPN's direct-to-consumer service will likely cost north of $25/month, in part because of the need to offset cord-cutting, Macquarie's Tim Nollen noted Friday. It's expected to debut in time for the 2025 pro football season and to include ESPN's linear channels and ESPN+ content as well as regional and local sports, he said.
ESPN launched a guide, "Where to Watch," for its app and website that lets sports fans find where they can watch any sport, whether on ESPN platforms, broadcast, cable, regional sports networks or other streaming services, it said this week.