However, the deal is based on a false idea: viewers prefer smaller TV bundles from a single provider over many SVOD subscriptions. The combined satellite businesses will have nearly 17 million subscribers and about 2. Moreover, the imperative to become more flexible is beyond urgent. In the short run, the deal gives DirecTV the clout to demand concessions from programmers. The recently settled carriage dispute between Disney and DirecTV was about this lack of flexibility in creating smaller, cheaper, more compelling content bundles for customers.
It is unclear how much flexibility DirecTV won from Disney, but it is in a much better position to get what it needs in future battles with programmers. Programmers rely on profitable though declining revenues from the linear channels to support the transition to direct-to-consumer services. Consolidating the two satellite services will undoubtedly yield cost savings that improve profitability. However, to be truly successful, it must slow or stop the rapid decline in subscribers.
After all, Dish and DirecTV have lost half their subscribers over the last ten years, and the decline is accelerating.
Morrow thinks that , with more flexibility, DirecTV will be able to capitalize on viewer dissatisfaction with managing multiple SVOD services:. For years, most pay TV subscribers said they wanted the ability to pick the channels in their TV channel bundle. Now that they have this ability with SVOD, they are unlikely to give it up easily.
The simple truth is that satellite TV is no longer necessary for most people to enjoy a great TV experience. Tags: Homepage Feature. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. This site uses Akismet to reduce spam. Learn how your comment data is processed. Related Posts. Traditional pay TV headed for a long decline or off a cliff? Netflix Q4 growth was great, but what about ? Leave a Reply Cancel reply Your email address will not be published.
