No Deal for DirecTV-Dish

Plus, local TV ads look optimistic

December 03, 2024

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

This week we're covering:

  • 📺️ No Deal for DirecTV-Dish

  • 🏰 Disney's Dominance

  • 🎥 Creative Spotlight: Jaguar - “Copy Nothing”

  • 🤖 Zoom's New Identity

DirecTV-Dish Merger Collapses

The long-anticipated merger between America's two satellite TV giants has fallen apart after Dish Network bondholders rejected a crucial debt exchange offer.

DirecTV announced on November 22 that it would terminate its agreement to acquire Dish Network, ending what would have created the largest US pay-TV provider with approximately 18 million subscribers.

The deal's collapse centered on a proposed debt exchange that would have forced Dish bondholders to take a $1.57 billion loss on their $8.9 billion in holdings. DirecTV CEO Bill Morrow stated the exchange terms were "necessary to protect DirecTV's balance sheet and operational flexibility," but bondholders weren't willing to accept the terms.

Key points:

  • DirecTV’s original deal offered Dish and Sling TV for $1, along with $9.75 billion in debt.

  • Analysts predicted the merger could have created $9 billion in synergy value.

  • TPG’s $7.6 billion acquisition of DirecTV’s remaining 70% stake from AT&T is still on track for 2025.

Industry analysts suggest this may not end the two companies' merger attempts. The next opportunity could arise when Dish faces significant debt maturities in 2026, potentially forcing the company into bankruptcy if not resolved.

For now, EchoStar (Dish's parent company) says it will focus on expanding its satellite and mobile broadband services. It recently raised $5.6 billion through spectrum-backed financing to strengthen its independent position.

Read More:

[Webinar] TV Advertising, Reimagined

Welcome to the future of TV advertising! As digital transformation and streaming shift consumer behavior, traditional TV has become costly and harder to measure, leading many brands to redirect ad budgets to digital channels with clearer, outcome-based metrics.

When:
Thursday, December 12th, 11:00 AM PST | 2:00 PM EST

Webinar:
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  • Prepare for the future of TV advertising and gain a competitive edge by learning from early adopters

TV Industry Updates

  • Local TV growth: BIA projected local TV advertising to hit $21 billion in 2025, up 3.6% from 2024.

  • Disney's dominance: Disney widened its lead over YouTube in Nielsen’s rankings, with ABC viewership up 7% and ESPN growing by 8%.

  • FAST moves for FilmRise: FilmRise partnered with Anoki’s GenAI-powered FAST service to launch 10 channels on Google TV with personalized ads.

  • Ad rep expansion: Viamedia signed deals with seven new service providers across five states, expanding its network to 80 cable operators.

  • Addressable ad growth: Research found addressable TV is now a must-buy for over half of advertisers, up from 35% last year.

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

Creative Spotlight: Jaguar -“Copy Nothing”


Jaguar launched a bold new brand campaign featuring a diverse cast and colorful visuals to signal its upcoming transition to an all-electric luxury vehicle company.

The Details:

  • The ad introduced a sleek new logo and bold taglines like "live vivid" and "delete ordinary" to signal a fresh direction for the brand.

  • Surprisingly, the ad didn’t feature any Jaguar cars, leading to mixed reactions and some online criticism.

  • Jaguar responded by suggesting that more information—and possibly new EV models—would be shared during Miami Art Week this December.

The ad took a daring, disruptive approach to reposition Jaguar as a forward-thinking luxury brand, even if the lack of actual cars was a controversial choice that drew mixed reactions.

Marketing Mix

  • AI spending surge: Business spending on generative AI jumped 500% in 2024, while OpenAI’s enterprise market share fell from 50% to 34%.

  • TV sets in the red: Major manufacturers started selling TVs at a loss, with margins between -3% and -7%, betting on ad revenue to offset costs.

  • Zoom's new identity: Zoom rebranded as an "AI-first work platform," dropping "Video" from its name as it moves beyond video conferencing.

  • Marketing's seat at the table: McKinsey found CEOs who prioritize marketing in growth strategies are twice as likely to achieve over 5% annual growth.

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