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The Slow Death of Satellite TV?
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It's hard to label these companies as failures just yet because between two companies collectively still had 21.8 million customers at the end of 2020 (DirectTV 13.0 million, Dish 8.8 million). This makes the two companies collectively the largest cable TV providers, with Comcast at 19.8 million and Charter at 16.2 million." /> <meta name="keywords" content="broadband, iptv," /> <meta property="og:description" content="There have been rumors for years about merging Dish Networks and Direct TV to try to gain as much market synergy as possible for the two sinking businesses. It's hard to label these companies as failures just yet because between two companies collectively still had 21.8 million customers at the end of 2020 (DirectTV 13.0 million, Dish 8.8 million). This makes the two companies collectively the largest cable TV providers, with Comcast at 19.8 million and Charter at 16.2 million." /> <meta property="og:url" content="https://circleid.com/posts/20210504-the-slow-death-of-satellite-tv" /> <meta property="og:type" content="article" /> <meta property="og:title" content="The Slow Death of Satellite TV?" /> <meta property="og:image" content="https://circleid.com/images/member_photos/photo_8383.jpg" /> <meta name="twitter:site" content="@circleid" /> <meta http-equiv="Content-Type" content="text/html; charset=utf-8" /> <link rel="alternate" type="application/rss+xml" title="CircleID Master Feed" href="http://feeds.circleid.com/cid_master/" /> <link rel="shortcut icon" type="image/ico" href="/favicon.ico" /> <link rel="stylesheet" type="text/css" media="all" href="/css/base.css" /> <link rel="stylesheet" type="text/css" media="all" href="/css/banners.css" /> <link rel="stylesheet" type="text/css" media="all" href="/css/posts.css" /> <script>document.documentElement.className = "js";</script> <script src="https://ajax.googleapis.com/ajax/libs/jquery/3.2.1/jquery.min.js"></script> <link href="https://fonts.googleapis.com/css2?family=PT+Serif:ital,wght@0,400;0,700;1,400;1,700&family=Roboto+Condensed:wght@400;700&family=Roboto+Mono:wght@300;400;700&family=Roboto:ital,wght@0,400;0,500;0,700;0,900;1,400;1,700&display=swap" rel="stylesheet"> <script type="text/javascript" src="/js/jq.clickmenu/jq.clickmenu.min.js"></script> <script type="text/javascript" src="/js/jq.scrollable/scrollable.min.js"></script> <script async src="https://cse.google.com/cse.js?cx=003374819184044847448:yb5rk7pq36s"></script> <!-- font awesome --> <script defer src="/fontawesome-free-6.6.0-web/js/brands.js"></script> <script defer src="/fontawesome-free-6.6.0-web/js/solid.js"></script> <script defer src="/fontawesome-free-6.6.0-web/js/fontawesome.js"></script> <div id="fb-root"></div> <script>(function (d, s, id) { var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) return; js = d.createElement(s); js.id = id; js.src = "//connect.facebook.net/en_US/sdk.js#xfbml=1&version=v2.5"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));</script> <script language="javascript" type="text/javascript" src="/js/html_buttons/html_buttons.min.js"></script> <script type="text/javascript" src="/js/js.textarearesizer/jquery.textarearesizer.min.js"></script> <link rel="stylesheet" type="text/css" media="all" href="/js/js.textarearesizer/textarearesizer.css" /> <script type="text/javascript" src="/js/jq.cid.postpage.js"></script> </head> <body> <div id="header"> <a href="/"><img class="headerLogo" src="/images/circleid.svg" border="0"/></a> <div class="headerLinks"> <span> Welcome: <a href="https://circleid.com/account/login">Login</a> | <a href="https://circleid.com/account/signup">Sign Up</a> | <a href="https://circleid.com/about">About CircleID</a> </span> <span> Follow: <a href="https://x.com/circleid" class="socialIcon"><i class="fa-brands fa-square-x-twitter"></i></a> | <a href="https://www.facebook.com/circleid/" class="socialIcon"><i class="fa-brands fa-square-facebook"></i></a> | <a href="https://www.linkedin.com/company/circleid" class="socialIcon"><i class="fa-brands fa-linkedin"></i></a> | <a href="http://feeds.circleid.com/cid_master/" class="socialIcon"><i class="fas fa-rss-square"></i></a> </span> </div> <div class="clear"></div> </div> <noscript> <div id="headerAlert"> WARNING: JavaScript is either disabled or not supported by your browser. 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Get in touch: <a href="mailto:ads@circleid.com">ads@circleid.com</a> </div> --> <h3> <a href="https://circleid.com/posts/20210504-the-slow-death-of-satellite-tv" class="blue">The Slow Death of Satellite TV?</a> </h3> <!-- post meta --> <table class="postMeta"> <!-- row 1 --> <tr> <!-- --> <td class="image" rowspan="2"> <a href="https://circleid.com/members/8383" title="Doug Dawson"><img class="photo" src="/images/member_photos/photo_8383.jpg"></a> </td> <!-- --> <td class="name" colspan="2" > <span class="author"> By <a class="blue" href="https://circleid.com/members/8383" title="Doug Dawson"><strong>Doug Dawson</strong></a> </span> <span class="author authorTitle">President at CCG Consulting</span> </td> </tr> <!-- row 2 --> <tr> <td class="date" > <ul class="dateline"> <li>May 04, 2021</li> <li>Views: 17,370</li> <li><a href="#comments" class="blue">Add Comment</a></li> </ul> </td> <td class="share" colspan="2"> <div class="addthis_inline_share_toolbox sharePost"></div> </td> </tr> </table> <!-- post body --> <div class="body"> <div style="margin-top: 24px;"></div> <figure class="right large"><a href="http://www.circleid.com/images/uploads/13164.jpg"><img src="http://www.circleid.com/images/uploads/13164.jpg" /></a></figure> <p>There have been rumors for years about merging Dish Networks and Direct TV to try to gain as much market synergy as possible for the two sinking businesses. It’s hard to label these companies as failures just yet because between two companies collectively still had 21.8 million customers at the end of 2020 (DirectTV 13.0 million, Dish 8.8 million). This makes the two companies collectively the largest cable TV providers, with Comcast at 19.8 million and Charter at 16.2 million.</p> <p>But both companies have been bleeding customers in the last few years. In 2020, DirecTV lost over 3 million customers, and Dish Networks lost nearly 600,000. Together, the two companies lost 14% of customers in 2020. This is not unusual in the industry when we saw Comcast lose 1.4 million cable customers during the same year.</p> <p>Dish Networks CEO Charlie Ergen has been predicting for years that a merger of the two companies is inevitable. The two companies could save money on infrastructure and overheads to prop up the combined businesses.</p> <p>There are a number of factors that make a merger complicated. AT&T divested 30% of DirecTV earlier this year to TPG Capital. That included TV offered by DirecTV, U-Verse, and AT&T TV.</p> <p>Probably the biggest long-term trend that bodes poorly for satellite TV is the federal government’s push to bring better broadband to rural America. Selling TV to customers with poor broadband is still the sweet spot for the two companies. As the number of homes with good broadband rises, the prospects for satellite TV sinks.</p> <p>My firm has been doing community surveys for twenty years, and we’ve noticed a big change in satellite TV penetrations. A decade ago, I expected to find a 15% market share of satellite TV in almost any town that we surveyed. But in the last few years, people in towns appear to be the ones that have bailed on satellite TV. It’s rare for us to find more than a few percent of households in towns who are now buying satellite TV. Households have moved to the web to find video content, with the big losers being satellite TV and landline cable companies.</p> <p>I also notice the same thing in traveling around the country. It used to be that you’d see satellite dishes peppered in every neighborhood. But I’ve noticed that satellite dishes are becoming a rarity. I know from walking in my neighborhood that only one house still has satellite TV. Just a few years ago, there were many more.</p> <p>Finally, these two companies are saddled with the ever-increasing programming costs plaguing the whole industry. Cable customers everywhere have rate fatigue as prices are increased every year to account for higher programming costs. Satellite TV is like the rest of the industry and is pricing itself out of the budget range for the average household.</p> <p>The two companies are also each saddled with a lot of current debt. Craig Moffett, of MoffettNathanson recently estimated that the combined companies might not have a valuation of more than $1 billion—a bad harbinger for a merger.</p> <p>It’s hard to picture any investor group that would want to back this merger. The whole idea behind a merger is that the combined company is worth more than the individual pieces. But even if the combined satellite companies were able to cut costs with a merger, it seems likely that any savings would quickly get subsumed by continued customer losses.</p> <p>It’s not unrealistic to think that a decade from now that this industry will disappear. Maybe the companies can hang on longer even as the number of customers continues to drop—but the math of doing so doesn’t bode well. The end of the satellite TV industry would feel odd to me. I witnessed the meteoric growth of the industry and watched satellite dishes popping up everywhere in the US. Satellite TV could fall into the category of huge tech industries that popped into existence, grew, and then died within our adult lifetime. 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If it detects that your information has been compromised or appears in any data breaches, it promptly alerts you so you can take necessary actions to protect your accounts.</li> </ul> </div> --> </div> </div> <!-- post footer --> <div class="footerByline"> By <strong><a href="https://circleid.com/members/8383" class="blue-u">Doug Dawson</a>, President at CCG Consulting</strong> <span class="authorBio"> — <em><p>Dawson has worked in the telecom industry since 1978 and has both a consulting and operational background. He and CCG specialize in helping clients launch new broadband markets, develop new products, and finance new ventures.</p></em></span> <a href="https://circleid.com/members/8383" class="blue-u"><span class="readmore" style="font-size: 14px;">Visit Page</span></a> </div> <h2>Filed Under</h2> <div class="footerTopics"> <ul><li><a href="/topics/broadband">Broadband</a></li><li><a href="/topics/iptv">IPTV</a></li</ul> <div class="clear"></div> </div> </div> <!-- comments --> <style> .comment-children.level_1 { margin-left: 0px; } .comment-children.level_2 { margin-left: 20px; } .comment-children.level_3 { margin-left: 40px; } .comment-children.level_4 { margin-left: 60px; } .comment-children.level_5 { margin-left: 80px; } </style> <h2 class="underPost">Comments</h2> <div id="comments"> </div> <div id="cmntForm"> <a name="add_comment"></a> <div id="cmntPreview" style="display: none;"> <p>COMMENT PREVIEW</p> <div id="livePreview"></div> </div> <form id="comment_form" method="post" action="https://circleid.com/posts/20210504-the-slow-death-of-satellite-tv" > <div class='hiddenFields'> <input type="hidden" name="ACT" value="1" /> <input type="hidden" name="RET" value="myeuXw8FKZN86Dr3pQ6RzkLM+5FT2WqV74u1Pao32qZyAh3Xvpi487+SoU73PTvpIzUVzU40I6FBIDhnj6MEVdYr0HVI44A3JCdjuPDad6KbJ6ko3mTgh6Ztc5nW6TdQ" /> <input type="hidden" name="URI" value="posts/20210504-the-slow-death-of-satellite-tv" /> <input type="hidden" name="PRV" value="" /> <input type="hidden" name="entry_id" value="13164" /> <input type="hidden" name="parent_id" value="0" /> <input type="hidden" name="site_id" value="1" /> <input type="hidden" name="csrf_token" value="7913c42bced09206cfa1b6583f2adc8cf45bd94e" /> </div> <input type="hidden" name="name" value=""/> <input type="hidden" name="email" value=""/> <div id="cmntEdit"> <p><strong>Comment Title:</strong></p> <input class="inputTitle" type="text" name="headline" maxlength="100"><p></p> <textarea name="comment" cols="70" rows="10"></textarea> </div> <div id="cmntButtons"> <p style="margin:0 0 10px 0;"><input style="padding:0;margin:0;" type="checkbox" name="notify_me" value="yes" /> Notify me of follow-up comments</p> <input type="submit" name="submit" value="Submit" /> <p style="line-height:1.4em;color:#666;margin-top:12px;">We encourage you to post comments and engage in discussions that advance this post through relevant opinion, anecdotes, links and data. 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