Japan’s DirecTV Japan Inc has confirmed it is in talks with arch-rivals SkyPerfecTV to merge “and integrate” its operations. If the deal is concluded SkyPerfecTV, an operation of Japan Digital Broadcasting Services Inc, would effectively control DirecTV, a subsidiary of Hughes Electronics Corp., which reportedly is facing difficulties. With the merger, there will be one company in Japan offering broadcasting by satellite. DTH digital broadcasting began in Japan in 1996, offered first by PerfecTV Corp, which later merged with Japan Sky broadcasting Co (JSkyB) in 1998 to create what is now Japan Digital Broadcasting.

SkyPerfecTV and DirecTV are consolidating to prepare for fresh DTH competition later this year from high-powered digital transmissions. DirecTV, which began operations in December 1997, has 401,000 subs, while SkyPerfecTV has 1.66 million. Japan Digital Broadcasting is owned chiefly by Sony, Softbank and News Corp, while DirecTV is controlled 43.3 per cent by Hughes and the remainder by Matsushita and others.