The proposed AT&T purchase of DirectTV is heating up with the filing of their 8K today. An interesting aspect of the plan is the fact that AT&T’s current delivery system has been flawed for years and is certainly not future proof.
Now, each of the current major players in the New Media/Internet space have issues with future proofing. And here’s why:
The bandwidth (read: content capacity) of each provider is constrained by a number of technical factors. And the current infrastructure available has limits for each of the players. There are limits to wires in the ground, wires strung between poles, and also Satellites that circle the earth.
And as the public’s appetite for “instant” content continues to increase, each of the major players will have to control options that will continue to permit expansion.
So the DirectTV purhcase makes sense for AT&T, just to remain competitive.
And those of us who have experience with each of the services know that the Internet access space is as important as the TV program space. As each of these systems continue to evolve, the best of breed players who control BOTH spaces will be much more likely to become more successful.
And last time I checked, all the majors were using separate providers (and sometimes delivery systems) for their Internet services.
Also See: AT&T Wants to But DirecTV
Thanks to Vox