Connectivity Chronicles #20241004

Telecom and Media News: DirecTV and Dish Merge

DirecTV has announced its acquisition of Dish Network and Sling TV from EchoStar for $1, along with the assumption of nearly $10 billion in debt. The merger aims to create the largest pay-TV provider in the U.S., combining DirecTV’s 11 million subscribers with Dish's 9 million, totaling 19.1 million subscribers. This scale is expected to help DirecTV negotiate better programming deals and offer smaller, more affordable packages to compete with streaming services and rivals like Comcast’s Xfinity and Charter’s Spectrum. For EchoStar, the deal facilitates a focus on its 5G wireless network, with the FCC granting it more time to meet 5G buildout requirements in exchange for accelerated deployments in certain markets. The transaction is subject to regulatory approval and involves Texas Pacific Group's $7.6 billion stake acquisition in DirecTV, with closure expected in late 2025.

Media Insights: NBC Dominates Viewership

NBC has won the 2023-2024 television season in both total viewership and the 18-49 demographic, driven by the success of its popular scripted and unscripted series, as well as the Paris Olympics. Key highlights include “Sunday Night Football” being the top program for the 13th consecutive season, “Saturday Night Live” leading in the 18-49 demographic, and the “Macy’s Thanksgiving Day Parade” being the most-watched entertainment telecast. The #OneChicago franchise dominated Wednesday nights, and “The Voice” was the most-watched alternative series. NBC also maintained its position as the #1 summer network for the 10th year in a row, with “America’s Got Talent” continuing its reign as the most-watched summer broadcast alternative show.

Telecom Corner: Verizon's $3.3B Tower Deal

Verizon has struck a $3.3 billion deal with Vertical Bridge, granting exclusive rights to lease, operate, and manage 6,339 of Verizon's wireless towers. This move aligns Verizon with other major carriers that have previously divested tower assets. The transaction, structured as a prepaid lease, will provide Verizon with $2.8 billion in upfront cash. Verizon will become an anchor tenant, leasing back capacity for 10 years with extension options. This deal aims to reduce Verizon's tower-related costs and increase vendor diversity. For Vertical Bridge, it's an opportunity to expand its portfolio and potentially lease space to other carriers, making it a mutually beneficial arrangement.

Media Trend: EA, Comcast Partner for FC 25

Electronic Arts, Comcast, and Peacock have announced a partnership to celebrate the launch of EA SPORTS FC? 25 and the first anniversary of EA SPORTS FC? Mobile. This collaboration will introduce unique in-game customization elements for FC 25 players in North America, including special vanity items for Xfinity and Peacock in Ultimate Team? as post-launch updates. Additionally, Comcast will feature Xfinity-branded streaming booths at the EA SPORTS FC New York Clubhouse event, marking Peacock’s first in-game integration and enhancing the gaming experience with Xfinity’s high-speed internet. The partnership also includes LED ad-boards for Xfinity and Peacock in Ultimate Team, contributing to an immersive matchday experience in EA SPORTS FC? 25. Sophia Smith, a U.S. Women’s National Team Soccer player and Comcast partner for the Paris 2024 Olympics, will have a specially designed Xfinity kit featured in the game. This collaboration underscores Comcast’s commitment to providing a superior gaming experience with reliable, high-speed internet and highlights the integration of live sports into the gaming world through Peacock.

Telecom Outlook: Tenorio Rumored for Verizon CTO

Santiago Tenorio, formerly with Vodafone and the Telecom Infra Project (TIP), is rumored to be joining Verizon as its new Chief Technology Officer. This move, if confirmed, could signal Verizon's increased interest in open radio access networks (open RAN), an area where Tenorio has been a prominent advocate. Tenorio's expertise in open RAN could benefit Verizon as it explores this technology. Concurrently, Tenorio has left his position as TIP's board chairman, with AT&T's Robert Soni taking over. This leadership change at TIP coincides with AT&T's recent commitment to open RAN technology. The potential appointment highlights a shift in the telecom industry focus toward open network architectures.

Media Shift: Disney+ Tightens Password-Sharing Policy

Disney+ has expanded its password-sharing crackdown, requiring users outside a primary household to either pay for their own subscription or be added as an “Extra Member” for an additional fee. This move, similar to Netflix’s approach, aims to convert password borrowers into paying customers. The new policy is now in effect in the U.S., Canada, Europe, and the Asia-Pacific region. Extra Member slots cost $6.99 per month for Disney+ Basic and $9.99 per month for Disney+ Premium, with only one Extra Member allowed per account. This change comes ahead of a planned price increase for Disney+ subscriptions in October.

Telecom Focus: TV Service Satisfaction Insights

J.D. Power's 2024 U.S. Television Service Provider Satisfaction Study reveals a significant satisfaction gap between live TV streaming and cable/satellite services, primarily due to cost differences. Streamers scored 625 points compared to cable/satellite's 524 (on a 1,000-point scale), with a 140-point gap in value perception. YouTube TV led streaming satisfaction, while Spectrum topped cable/satellite nationally. The study also examined regional preferences for cable/satellite providers. Cost remains the main driver of satisfaction, with streaming services outperforming traditional providers across all measured dimensions. As streaming reshapes the industry, cable and satellite providers are exploring new revenue models to stay competitive. The study also notes that most TV watchers use multiple streaming services.

Unlock the power of telecom and media data with our advanced analytics solutions. Gain actionable insights to drive your business forward. Contact us today at Contact.Media&[email protected].