AT&T has agreed to acquire DirecTV for $49 billion. The two companies’ boards approved the agreement yesterday. The deal, which comes just three months after Comcast’s $45 billion agreement to purchase Time Warner Cable, will create a new pay TV giant as video consumption continues to move online. Combining AT&T and DirecTV would result in a company with 26 million pay TV subscribers in the U.S., second only to Comcast and Time Warner Cable if regulators approve their deal. Continue reading Pay TV: AT&T Agrees to Purchase DirecTV in $49 Billion Deal

According to NPD Group’s latest “TV Everywhere Report,” cord cutters are not the only ones turning to OTT services. NPD indicates that 21 percent of today’s pay TV subscribers are using TV Everywhere services at least once a month. The report found that three out of four subscription video-on-demand households also have a pay TV subscription. And about 30 percent of SVOD users turn to TV Everywhere weekly, compared to 20 percent of TV Everywhere users who choose not to subscribe to SVOD. Continue reading NPD Report Says Pay TV Subscribers Turn to TV Everywhere

AT&T is close to striking a $50 billion deal to acquire satellite TV provider DirecTV, according to people familiar with the matter. An agreement between the two companies involving a mix of cash and AT&T stock could be reached within two weeks. Insiders say the two sides are discussing a share price for DirecTV in the low to mid-nineties (at $95 a share, such a deal would value DirecTV at almost $48 billion). The deal comes as AT&T considers video distribution a potentially key initiative for its future. Continue reading AT&T Could Reach $50 Billion Deal for DirecTV in Two Weeks

Cable industry executives gathered at the NCTA Cable Show to discuss growing competition from online video content providers, and the need for cable TV to improve delivery systems of cable programming across all devices. By improving the consumer experience and video-on-demand services, cable companies hope to “protect their turf” from the likes of Netflix and Hulu. Also, leaders in the cable industry recognize the need to find a solution for rising cable TV prices. Continue reading Cable Execs Call for Action to Challenge Online Competitors

Netflix has reached an agreement with cable companies RCN, Grande Communications and Atlantic Broadband that will allow subscribers to basically access the streaming video service as if it were a cable channel starting next week. Netflix will be added as an app to set-top boxes to provide subscribers with the option of viewing the Netflix content they would otherwise access via computers and mobile devices. The offer is only available for customers of the cable companies who also subscribe to Netflix. Continue reading Netflix to Be Available to 500,000 Cable Subscribers Next Week

Netflix announced on Monday that it plans to raise the price of its streaming video service for new members by a dollar or two per month. The service, which now has more than 34 million paid U.S. subscribers, is justifying the rate increase based on its continued investment in original programs, including series such as “House of Cards” and “Orange Is the New Black.” In addition to its first-quarter earnings report yesterday, Netflix announced opposition to Comcast’s proposed acquisition of Time Warner Cable. Continue reading Netflix Passes 34 Million Subscribers, Previews Price Increase

TV and film measurement service Rentrak recently released its latest “State of VOD” report, which found that free video-on-demand viewing of prime time broadcast television programming increased 24 percent over the same period last year. The Rentrak report also found that 66 percent of prime time program viewing occurred after the third day of original broadcasts, suggesting that there is increased opportunity to generate additional advertising dollars for VOD. Continue reading Rentrak Reports Increase in VOD Broadcast Prime Time Viewing

New research by Parks Associates suggests that 4K televisions will trace a similar trajectory in terms of price and consumer adoption that played out with HDTVs over the last 15 years. However, the study’s findings point to a slightly quicker progression for 4K. While HDTVs took about 15 years to achieve a certain level of affordability and ubiquity, Parks predicts that 4K will reach mass market prices within two to three years and exceed 80 percent penetration of households in 10-12 years. Continue reading Study Predicts 4K Adoption Will Be Faster Than That of HDTV

Apple is in talks with Comcast about joining forces on a streaming-television service, according to people familiar with the matter. The Wall Street Journal reports the service “would use an Apple set-top box and get special treatment on Comcast’s cables to ensure it bypasses congestion on the Web.” While discussions are in the early stages and a number of hurdles remain, the deal “would mark a new level of cooperation and integration between a technology company and a cable provider to modernize TV viewing.” Continue reading Apple, Comcast Discuss Teaming Up for Streaming TV Service

According to a new report from research firm SNL Kagan, the U.S. pay-TV industry registered a decline in subscriptions during 2013. While the loss of 251,000 subscribers among cable, satellite and telco TV providers was quite small (just 0.02 percent of 110.2 million total pay-TV households), it raises concerns that cord-cutting may have a greater impact in the future. The report notes that younger American consumers are less likely to have pay TV than their parents. Continue reading Pay TV Registers Decline for First Time Over Full-Year Period

Sony has plans to offer original series through its PlayStation gaming console, in an effort to expand its media offerings beyond video games. The move is separate from the company’s planned online pay TV service, and part of a larger push to broaden the appeal of the device in the living room. PlayStation users already have access to streaming services and digital downloads of TV shows and movies. The first original will be a one-hour supernatural drama series called “Powers,” produced by Sony Pictures Television. Continue reading Sony Plans Original TV Series for PlayStation Gaming Console

The long-running legal battle between Viacom and Google over YouTube has been resolved. Viacom has been suing Google since 2007, arguing that the online video site violated copyrights. The two companies announced yesterday that they have settled out of court. Specific terms of the settlement were not disclosed, but people familiar with the matter suggest that both sides are now free to explore potential business partnerships, including the possibility of collaboration on advertising technology. Continue reading Viacom and Google Resolve Copyright Litigation Over YouTube

In an effort to attract more U.S. viewers, Paris-based online video site Dailymotion is pushing new original programming that it hopes will help the service compete with Google’s YouTube. Dailymotion plans to initially commit between $3 million and $4 million to produce up to six series this year that will include leading personalities from industries such as food, music and entertainment. The company is also courting U.S. firms as potential investors. Continue reading Mario Batali to Kickstart New Dailymotion Original Programming

Following this week’s news of a first-of-its kind licensing agreement between Disney and the Dish Network, DirecTV said it is in similar talks to license the rights to offer Disney channels as part of an Internet-based product. The rights are part of a larger programming deal that would replace a current agreement slated to expire in December. In related news, Verizon CEO Lowell McAdam said he expects to reach a streaming deal with Netflix and hopes to partner with content providers for a broadband-only video service. Continue reading DirecTV in Talks with Disney for New Licensing Agreement

As part of a new long-term programming deal with Disney, Dish will curtail the use of its DVR ad-skipping feature, Auto Hop, for ABC shows. The deal will also provide Dish with online video rights to Disney’s flagship TV channels for a planned Internet-based TV service. The rights deal, confirmed by both companies Monday, marks a first of its kind for Disney. ABC and other major broadcasters have been involved in litigation over the Auto Hop feature since it launched in 2012. Continue reading Dish Programming Deal with Disney Resolves Auto Hop Dispute