DirecTV and Dish Create a Giant

Plus, The Federal Trade Commission's Crack Down

Welcome to The TV Room. Your weekly digest of television, streaming, and digital media insights that matter.

This week we're covering:

  • 📡 DirecTV and Dish Create Pay-TV Giant

  • 🍏 FreshDirect’s New NYC Campaign

  • 🎥 Creative Spotlight: Uber Eats - “Football is for Food”

  • 🤖 The FTC Cracks Down on AI Use

DirecTV and Dish Network to Merge

In a long-anticipated move, DirecTV is set to acquire rival Dish Network for a symbolic $1, plus the assumption of nearly $10 billion in debt.

This merger will create the largest pay-TV operator in the US, with a combined subscriber base of over 19 million.

The deal comes as both companies struggle with cord-cutting:

  • They've collectively lost 63% of satellite customers since 2016

  • Less than half of US households now use traditional pay-TV.

DirecTV CEO Bill Morrow says the merger will allow them to "work with programmers to realize our vision for the future of TV," including offering smaller, cheaper packages to compete with streaming services.

Key details:

  • Expected to close in Q4 2025, pending regulatory approval

  • Aims to generate $1 billion in annual cost savings

  • Includes Dish's Sling TV streaming platform

This isn’t the first merger attempt. A 2002 deal was blocked by regulators, but the landscape has shifted. With streaming dominance and rural broadband options like Starlink, the deal might avoid the same scrutiny.

For EchoStar, the merger delivers critical capital to tackle over $20 billion in debt. DirecTV, meanwhile, seeks to use the expanded scale to survive the shrinking pay-TV market and take on streaming giants.

The big question: Can this merger breathe new life into the struggling satellite TV industry, or is it simply delaying the inevitable decline in the face of streaming's dominance?

Read More:

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TV Industry Updates

  • Automation push: Disney aims to automate 75% of ad sales by 2027, with over half of streaming dollars now programmatic.

  • Ad experience: 71% of viewers say Plex's ad breaks are "just right," while 41% think Pluto TV's are "too long" on FAST platforms.

  • Going public: Connected TV ad platform MNTN has tapped Morgan Stanley for a potential IPO as early as 2025.

  • Award nominees: The Drum Awards Festival 2024 nominations are live, with Coca-Cola, Doritos, and Spotify up for top honors.

  • Fresh approach: FreshDirect launched a new NYC TV campaign targeting health-conscious millennials with New York-themed food sculpture ads.

Stay up to date on the latest in TV advertising by joining our Slack community!

Creative Spotlight: Uber Eats - “Football is for Food”

Uber Eats launched a clever campaign with Matthew McConaughey, suggesting football was invented for food, connecting the sport and cuisine.

The Details:

  • The ad premiered during Thursday Night Football, launching a series of spots for the season.

  • McConaughey connects football and food, noting names like Jerry Rice and Sauce Gardner, along with terms like quarterback 'scrambles' and 'pancake' blocks.

  • The campaign entertained viewers while promoting Uber Eats' game day deals for sports fans.

  • San Francisco 49ers’ star Christian McCaffrey added extra star power to the football-food link.

What We Loved: The ad’s playful wordplay and humor crafted a memorable link between football and food, effectively promoting Uber Eats’ services with a fun, engaging twist.

Marketing Mix

  • FTC acts: The FTC's new Operation AI Comply targets companies using AI for deceptive practices that harm consumers.

  • Smart paywall: Business Insider's AI-based paywall boosted conversions by 75%, with 60% from previously free content.

  • AI-driven efficiency: Automation boosts performance marketing while enhancing creativity, consumer insights, and team collaboration.

  • Loyalty pays: Nearly 70% of consumers will pay more for brands they've grown loyal to, giving relationship marketing a clear edge.

  • UGC dominates: User-generated content is becoming the key to SEO, offering authenticity and resilience against AI-generated material.

  • Gaming ads rise: EA Sports FC 25's partnership with Intersport showcases the growing power of in-game advertising for reaching digital-native audiences.

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