Blog by: George Thomas and Ron Ledgard
Changes are afoot in the video service game.
At first glance the consummation of a deal between DirecTV and the NFL, looks like little more than two broadcast partners renewing their wedding vows, something that couples who have been together for 20 years – like these two entities – sometimes do.
But there are other implications, the primary one being it paves the way for AT&T to continue its $48.5 billion pursuit of the satellite dish-based service, which Ma Bell began last Spring in hopes of expanding its reach. The two already have an agreement for AT&T to sell DirecTV’s services, so a merger makes perfect sense.
AT&T’s Internet based video service – U-Verse – provides them with 5.7 million subscribers, according to data from the National Cable & Telecommunication Association, an industry trade group. DirecTV has almost four times that number with 20.3 million.To read more or comment...