Thursday, September 26, 2013

DirecTv Eyes OTT Video Platform

DirecTv was no doubt disappointed that their bid for Hulu was rejected.  It seems they still have an interest in adding a video streaming component to their business model.  "CEO Michael White said the satellite TV giant will probably launch a targeted over-the-top video offering, which will be on a smaller scale than Netflix or Hulu."  So the question to ask is, will DirecTv build or buy.

With Hulu off the table and Netflix an unlikely acquisition target, perhaps DirecTv should look at a streaming service like Redbox Instant. Currently in a partnership deal with Verizon, Redbox might like to have the resources of DirecTv as well to help them better compete in a streaming media world.  Whether Verizon and DirecTv could work together might be either a stumbling block or an opportunity for both companies to better advance their footprint as well. 

As far as Redbox Instant is concerned, it has been slow out of the gate to compete at the same level with Hulu, Netflix, or even Amazon Prime.  It has the technology and a current library to work from, a better position to be in for DirecTv, than to try to build another video streaming competitor from scratch.  Perhaps this idea is what White is alluding to at the Goldman Sachs Communacopia conference.  It would certainly make sense to partner rather than build at this moment.