Dish Chairman Says Merger With DirecTV Is “Probably Inevitable” Amid Industry Turmoil

After years of subscriber losses and growing competition from streaming platforms, Dish Network Chairman Charlie Ergen has signaled that a long-speculated merger with DirecTV may finally be on the horizon. On a recent earnings call, Ergen described the potential merger as “probably inevitable,” citing regulatory trends and shifting consumer behaviors that continue to erode the traditional pay-TV market.

“You can't swim upstream against a real tide of the over-the-top, big players,” Ergen said, acknowledging the mounting pressure satellite providers face in an increasingly digital landscape.

Why the Merger Makes Sense Now

Ergen’s comments come amid Dish’s continued customer attrition. In Q4 2019 alone, the company lost 194,000 subscribers 100,000 from its core satellite business and 94,000 from its streaming service Sling TV. The year ended with 11.99 million total TV customers.

DirecTV, which is owned by AT&T, has fared even worse. AT&T reported a staggering 1.2 million subscriber loss in the same quarter, capping off a year that saw over 4 million TV customers flee its services. The telecommunications giant attributed the drop to a strategic “focus on profitability,” which involved raising prices and cutting promotional offers—decisions that drove customers to more affordable streaming options.

With both companies hemorrhaging subscribers, the logic behind a merger is compelling. As Ergen pointed out, the regulatory environment has softened over the years, and the government appears more open to large-scale media consolidations.

The Regulatory and Competitive Landscape

A merger between Dish and DirecTV wouldn’t be without hurdles. For starters, AT&T would need to be on board. The company purchased DirecTV for $48.5 billion in 2015 and has continued to publicly defend the acquisition. In 2019, AT&T executive John Stankey maintained that “DirecTV is an important part of what we’re going to be doing going forward.”

However, not everyone within AT&T shares that view. Activist investor Elliott Management Corp., which holds a $3.2 billion stake in the company, has been pushing for a reevaluation of its TV strategy, including a potential DirecTV divestiture. That pressure, combined with mounting losses, may be enough to shift internal consensus.

From Dish’s perspective, AT&T’s dominance remains a threat despite DirecTV’s weakening position. In a recent SEC filing, Dish warned that AT&T’s access to nationwide broadband and mobile infrastructure gives it an unfair advantage especially when it comes to bundling services and leveraging content from its 2018 acquisition of Time Warner.

Looking Ahead: Dish’s Bigger Plans Beyond TV

While the traditional satellite business struggles, Dish is laying the groundwork for a broader pivot. Thanks to the T-Mobile/Sprint merger, Dish has acquired key wireless assets and now plans to build a nationwide 5G network. This move positions Dish as a future competitor in the mobile space a market where AT&T already has a strong foothold.

Still, the battle won’t be easy. Dish has criticized AT&T’s zero-rating practices, which exempt its own video services from data caps potentially undermining fair competition. Yet, Dish may soon adopt similar strategies as it enters the mobile race.

Financially, Dish reported $3.24 billion in revenue for Q4 2019, down slightly from the previous year. However, net income rose to $389 million, up from $337 million year-over-year. These figures suggest that while revenue is slipping, cost-cutting and restructuring efforts are helping to stabilize the bottom line.

Final Thoughts: A Merger Born of Necessity

The proposed Dish–DirecTV merger isn’t about dominance it’s about survival. As streaming giants like Netflix, Disney+, and Amazon Prime Video continue to reshape the entertainment industry, legacy satellite providers must consolidate to stay relevant.

While AT&T has yet to officially comment on merger plans, the market signals are clear: both companies are bleeding subscribers, and regulatory attitudes are more merger-friendly than ever. If there’s ever been a time for Dish and DirecTV to join forces, it’s now.