News Corp. OK could lead to price war

[Gregg Lengling]

News Corp. (NWS) czar Rupert Murdoch is expected to ramp up the competitive fight for consumers' TV dollars, now that federal regulators have conditionally approved the company's purchase of a controlling stake in DirecTV.

 

With both the Federal Communications Commission (news - web sites) and Justice Department (news - web sites) on Friday clearing News Corp.'s $6.6 billion purchase of a controlling interest in parent Hughes Electronics from General Motors (GM), News Corp. is poised to become the nation's second-largest provider of pay TV services. DirecTV has gained 12 million subscribers in just nine years. No. 1 Comcast leads the industry with 21 million customers.


News Corp. will also own the broadest holdings in the media industry. The company will be a major player in everything from broadcast, cable, local and now satellite TV with its Fox Broadcasting, Fox News and DirecTV units to feature films and newspaper publishing with Twentieth Century Fox and New York Post.


The aggressive Murdoch will likely engage his cable and satellite competitors in a price war, says Thomas Eagan, cable and satellite analyst at Oppenheimer & Co.


DirecTV's current prices range from $39.99 for basic service to $85.99 for a premium service that includes free use of a TiVo (news - web sites) personal video recorder.


"Rupert will really take his gloves off with the cable industry," says Larry Gerbrandt, senior analyst at research firm Kagan World Media. "You'll see tighter integration with studio content. DirecTV will get a lot more aggressive - pricewise and technologywise."


DirecTV spokesman Bob Marsocci said it's "speculation" whether DirecTV will slash prices to attack cable operators and satellite rivals such as EchoStar. Among the changes planned for DirecTV in 2004:
•Interactive television. Want to follow your favorite NASCAR (news - web sites) driver through a race or pick your own viewpoint of NFL action during "Sunday Ticket" coverage? DirecTV will oblige with close-up camera angles that put you behind the wheel. Under News Corp., DirecTV will add a mix of new sports, weather and news channels, while boosting video-on-demand and flashy technology to "personalize" viewing, says Marsocci. DirecTV has been steadily dropping the price of its TiVo service: to $4.99 a month (after $99 installation) from $10.99 a few years ago.


•I want my HDTV. The nation's largest satellite TV service will expand the number of high-definition channels. The service currently carries seven channels, including HD versions of HBO, Showtime and ESPN. Price: an extra $10.99 a month.


•Local coverage. DirecTV will expand the number of local channels to 105 markets from 64 by the end of 2004.

[gparris]

Please give the balance of the article...I would like to know what is after the "Among the changes planned for Directv in 2004:"

What are these?  Maybe you forgot the rest of the article?

Please advise....thank you.

[Gregg Lengling]

The thread is updated with the rest of the article...apparently it got truncated when I inputted it ....sorry.:bow: