Whenever an average American TV user and consumer thinks about getting a new TV subscription or change the one they have, DirecTV comes on top of the list of the best TV services available. Well, it is one of the most advanced and innovative companies in the on-demand content service with its extensive research and history.
Here, we have gone through the long history of DirecTV as a company and as they went through their expansion and then acquisition. So here we go:
Early Days, Becoming DIRECTV
The company started as an American satellite direct broadcasting service in December 1985. They got a license from FCC in 1981 as Hughes Communications, Inc., they started as a medical research company called Howard Hughes medical institute and they developed many subsidiaries in the next years.
They also had a communications wing and got the license of 27 frequencies while the opposite company the United States satellite broadcasting got only five. They improved their services over the years as the technology made progress, thanks to their research and development department.
They developed high powered satellites with higher digital compression standards we know as MPEG-2. This was a break in satellite technology as they were able to send multiple digital television channels through one frequency.
Hughes communications were getting huge success and they decided to make DirecTV as a standalone company and the name took inspiration from the direct broadcast satellite television service, the service they were providing at the moment.
After the development of DirecTV, they proceeded towards their plan of making a standalone satellite system that could receive 175 channels from just a small 18-inch dish. It was a big achievement when they introduced it in the market.
They kept on making new services and products and then in 2005, the company DirecTV broke up with the parent company Hughes Network System to become a separate standalone satellite television service.
DIRECTV Expansions and Acquisitions
ReplayTV was the second-best satellite TV provider in the market at around 2007, DirecTV acquired the company in 2007 then kept on acquiring more companies like Connect Television, Inc,. in 2009 and LifeShield in 2013.
The biggest turn came in the history of DirecTV when the talks of the acquisition began with At&t in 2014, and then At&t bought DirecTV. The whole transaction of At&t buying DirecTV was worth $48.5 billion and all the shareholders got $95 dollars per share in cash and stock.
This transaction proved to be the most beneficial for both companies and they both grew even more in the upcoming years. At&t was struggling with their Pay-TV and U-verse at the moment and they actually got a huge customer base of 20 million viewers from DirecTV.
The deal was approved in 2015 and At&t started expanding its fiber-optic service to more areas along with the new and improved TV service. This success made At&t invest more and more in DirecTV and cut off their budget from U-verse. After a clear inspection and work of more than a year, At&t decided to merge their DirecTV and U-verse and that integration work was done by Ericsson.