AT&T’s deal with DirecTV opens door to innovators

Written By Unknown on Selasa, 20 Mei 2014 | 12.32

Now, it's a fair fight.

AT&T's planned $48.5 billion merger with DirecTV creates a worthy adversary for the Comcast-Time Warner Cable colossus that is currently pending regulatory approval.

And it gives the plucky peeps at Netflix a potential upper hand as they engage in an antagonistic and incredibly entertaining war of words with Comcast, protesting the Time Warner merger and continuing to accuse the company of throttling its streaming speeds.

Let's hope that AT&T isn't so (allegedly) short-sighted as to sabotage its own broadband service to make its competitors look bad. Consumers are sick of this nonsense.

I could envision AT&T going #TeamNetflix, making nice with the beloved streaming service, which got us hooked on binge-watching and ushered in a new television renaissance.

If approved, the DirecTV merger would allow AT&T to inherit a wealth of content partners, and 38 million new video subscribers who are going to expect new benefits as a result. The new AT&T television behemoth would be smart to position itself as the T-Mobile of cable and broadband providers: the pro-consumer, value-friendly alternative focused on delivering Netflix, Amazon Prime Instant Video and apps without the hurdles and strings.

Doing so would deal a serious blow to the new Comcast goliath, forcing it to play nice with its own content partners.

But let's be honest: The consumer benefits from these mergers, if any, would be short-lived. The cable landscape is consolidating, and it's doing so out of fear and a lack of any new ideas for delivering content to consumers.

Consumer advocates will say this is the latest blow to a marketplace where consumers are already kicked in the pants by lousy service and high prices. But I say, let the goliaths just buy each other up. Let them play spin-the-bottle with one another. And while they're doing that, Netflix and other creative companies such as Amazon and even Microsoft (think Xbox) will continue to innovate.

And eventually the strategically challenged titans will be innovated out of existence.


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