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Dish Network and Direct TV try to join forces

By: Pat Johnson



In October of 2001, Dish Network and Direct TV made a very
serious attempt at joining forces with one another which would
have given these two Satellite TV providers a huge monopoly in
the satellite TV industry, however, the US Department of Justice
took a bold face stance and blocked the merger. If the merger
between Dish Network and Direct TV would have taken place, the
new company would serve the entire US without fear of any
competition, resulting in a complete monopoly position that is
not allowed. As we all know, competition spurs competitive
pricing and continuous progress and a merger of this magnitude
would basically result in less progress and the possibility of
inflated prices. At the present time Dish network and Direct TV
are the only two satellite TV providers in America, a merger
between the two would reduce this to just one company, which
clearly is a dangerous monopoly situation for consumers at hand.
Even in areas with cable TV the merger would result in just 2
television broadcasting providers, of which each has a monopoly
on its own technology. In their application, Dish Network and
Direct TV claimed that their joining of forces was necessary to
compete against the cable TV Giants. However, at the time of
said application, statistics indicated that satellite TV was
growing at an incredibly fast pace while cable TV subscriptions
were on the decline. Over all it seemed that without any other
satellite TV providers a merger between Dish Network and Direct
TV would not be not in the public's best interest. The fact that
there are two satellite TV providers and not just one is a
blessing to everyone interested in signing up for Satellite TV
Service, as mentioned earlier competition is good for pricing.
Dish Network and Direct TV are now going head to head with one
another in a very aggressive marketing campaign and as a result
the consumer gains to prosper very nicely by taking advantage of
the phenomenal deals that are being offered by either of these
two Satellite TV giants.


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