The DIRECTV-Dish Sale: Who Will It Hurt the Most?

By Phillip Swann
The TV Answer Man –Follow me on X.
Former editor of Satellite DIRECT magazine. Reported on DIRECTV for 30 years.

TV Answer Man, you seem pretty upbeat about the DIRECTV and Dish deal as it will help the subscribers. Is there anyone who will be hurt by it? — Arnie, Toledo, Ohio.

Arnie, DIRECTV announced yesterday that it was buying Dish’s satellite TV service, and Sling TV, the multi-channel live streamer. I wrote yesterday that I thought it would help both the DIRECTV and Dish subscriber because it would give DIRECTV more leverage in carriage negotiations. That should help DIRECTV offer slimmer plans at reduced prices after the deal is approved by the feds. (Assuming that it is; and I think it will be.)

But there is one group that could be hurt by consolidation in the satellite TV industry: Rural residents.

It might surprise some journalists and analysts that many Americans still don’t have access to high-speed Internet and/or they can’t afford a decent Internet service. But various studies say that scores of millions, particularly in rural areas, fall into that category. The federal government tried to fix this issue in 2021 with a massive infrastructure bill which included funding for expanding Internet service in rural areas. But like many government projects, the initiative has been delayed by red tape and bureaucratic malfeasance.

So as of now, many rural residents can not subscribe to the multitude of available streaming services, or even subscribe to cable TV. They basically have one option to watch multi-channel TV: satellite TV. And if Dish and DIRECTV become one, their choices will go from two to one. This will make it less likely that DIRECTV will offer discounts and other incentives to get rural residents to subscribe. With no competition, it won’t have to.

This issue is likely to be the major obstacle to the feds approving the merger. I don’t think it’s enough to kill it, but it might require DIRECTV to offer some concessions that would guarantee fair and efficient service in rural areas.

Arnie, hope that helps. The TV Answer Man will answer more question about the DIRECTV-Dish deal today. If you have a question, send it to The TV Answer Man at swann@tvanswerman.com Please include your first name and hometown in your message.

The TV Answer Man is veteran journalist Phillip Swann who has covered the TV technology scene for more than three decades. He will report on the latest news and answer your questions regarding new devices and services that are changing the way you watch television. See the bio for Phillip Swann here.