Mergers Shake Up U.S. Pay-TV Market

AT&T is reportedly in advanced talks to acquire satellite TV provider DirecTV in a deal that could be worth $50 billion. DirecTV would add roughly 20 million video subscribers to the 5.7 million that currently subscribe to AT&T's own U-Verse video service. With a total of 26 million TV customers, the new entity would rival a Comcast and Time Warner Cable, whose planned mercher is currently under investigation. Comcast and Time Warner Cable currently serve a combined total of 34 million customers, but Comcast has agreed to divest approximately 3.9 million video customers to Charter Communications in case the merger goes through.

Both deals would further consolidate the telecom and Pay-TV industry as more and more consumers are opting for so-called triple play or even quad play offers that combine telephone, broadband, TV and (sometimes) wireless services.