Ever since the DirecTV‘s CEO stepped down back in July, there has been talk about someone buying up the satellite TV provider. The latest analysis chatter states Verizon might pick up DirecTV to dramatically increase its marketshare overnight. The purchase would make Verizon second only to Comcast in subs when the DirecTV customer base is added to Verizon’s current FiOS subscribers and supercharge Verizon’s influence on the market.
All this talk started when Verizon’s CEO indicated that he wanted to “make video the company’s core product for its fixed-line business.” The Wall Street Journal then kindly points out the obvious that the best way to do that is to scoop up a satellite company. DirecTV would be the logical choice over Dish Network as it’s better performing and has a larger subscriber base.
Of course DirecTV or Verizon haven’t indicated that this is currently in the works, but the WSJ does have a point. Verizon’s fiber optic service, FiOS, is almost universally loved for its fast Internet, wide range of high-def stations and modest price. However, it’s been slow to roll out to new markets because fiber optic cable has to be ran to each home, which is a timely and costly endeavor. Verizon probably doesn’t have any plans to scale back its FiOS expansion plans, but it will take the company a while to be a national player at the current rate. Buying DirecTV – or Dish Network – is the fastest way to the top.