AT&T, DirecTV merger could make it harder to cut the cord
AT&T and DirecTV said in a federal application that their combined companies would be able to offer lower prices for bundles of satellite television and high-speed Internet, putting pressure on cable companies to also cut fees.
The companies say that's great for consumers and should be a key reason to approve their $49 billion deal. But that's only true for consumers who want to keep on paying for television services like satellite and cable. And many polls show consumers are moving in the opposite direction. Cable subscriptions have been flat or declining for decades, and consumers say they would cut the cord if there was more content -- particularly live sports -- available online. If anything, the major telecom and cable mergers under federal review highlight those industries' long-term commitment to the very model of bundling that consumers say they want to leave. And if approved, those bundles will be harder for customers to abandon, analysts say. "For many many consumers, the decision whether to become or remain a pay-tv subscriber indeed may largely turn on high-value sports programming," said Jeffrey Silva, a telecom and media analyst. "It's gold, just huge."
AT&T, DirecTV merger could make it harder to cut the cord AT&T: DirecTV Buyout Only Way To Stay Competitive (WSJ) AT&T’s Pitch to the Feds: Let Us Buy DirecTV, and Maybe TV Bills Won’t Go Up So Much (Recode)