DirecTV and Dish Network are merging in a $10 billion deal

The Street

TheStreet’s Conway Gittens brings you the biggest news of the day, including what investors are watching and the looming port strike could mean disaster for consumers.

Transcript

00:00I'm Conway Gittins reporting from the New York Stock Exchange. Here's what we're watching on the street today.

00:04It was a skittish stock market Monday, but for the Dow and the S&P 500,

00:09September marked the 10th monthly gain out of the last 11.

00:14Looking ahead to Tuesday, Wall Street will get the Institute for Supply Management's factory survey for September,

00:20layoff and job turnover data for August, and Nike's first quarterly results since announcing a new CEO.

00:27In other news, satellite TV customers are about to have fewer options.

00:32DirecTV and Dish Network are merging in a $10 billion deal that would create the nation's largest paid TV provider.

00:39The question surrounding this proposed merger isn't why, but what took so long.

00:44Viewers have cut the cord at an alarming rate, leaving all paid TV operators in an existential crisis.

00:51Combined, the two companies say they will have roughly 18 million customers.

00:55That's a head-spinning 63% plunge from peak subscriber numbers in 2016.

01:01Compare that to others in the industry.

01:03Both Charter and Comcast had about 13 million subscribers as of the end of the second quarter.

01:09DirecTV CEO Bill Morrow said,

01:21which is to aggregate, curate, and distribute content tailored to customer interests,

01:27and to be better positioned to realize operating efficiencies while creating value for customers through additional investment.

01:35So what does that mean for customers?

01:37The possibility of more blocked-out channels and more fights between satellite companies and channel owners.

01:43In September, DirecTV customers lost access to Disney-owned channels like ESPN and ABC.

01:50And what about prices?

01:51DirecTV had previously announced price increases for October before the merger news.

01:57Streaming customers will have to pay $6 to $10 more a month, while satellite TV prices are going up by as much as $10.

02:05A $7 price increase went into effect at DISH starting in September.

02:10That'll do it for your daily briefing from the New York Stock Exchange.

02:13I'm Conway Gittens with The Street.

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