AT&T plans "tens of billions" in cost cuts, more layoffs

Discussion in 'DIRECTV General Discussion' started by espaeth, Mar 4, 2020.

  1. CraigerM

    CraigerM Well-Known Member

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    The reason they have a box is that it runs the Android TV Operators Tier. This lets AT&T TV be like DTV. Android TV Operators Tier is different than regular Android TV. I think the Operators Tier lets AT&T TV have channel numbers, trick play and automatically boots into the AT&T TV App and live TV.
     
  2. compnurd

    compnurd Hall Of Fame

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    What does that have to do with cost cuts?
     
  3. b4pjoe

    b4pjoe New Member

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    They could save some money by stop sending me mail to get the wonderful AT&T high speed broadband that doesn't exist where I live.
     
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  4. CraigerM

    CraigerM Well-Known Member

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    They were talking about the UI that AT&T TV uses earlier in this thread.
     
    Last edited: Mar 8, 2020
  5. lparsons21

    lparsons21 Hall Of Fame

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    Except that doesn’t have anything at all to do with cutting costs. The ATT box is designed specifically to help them self describe their new streaming service as “Premium”.

    The problem is that at Now, Entertainment and Choice it isn’t significantly different in any meaningful way than YouTubeTV or Hulu+Live. Only for those wanting the Total or Ultimate levels does it even come close to making sense, and that only in the first year. There literally is no case to be made at all for the 2nd and subsequent year prices.

    Just using Entertainment, the smartest plan a consumer could make would be, subscribe and at the end of the year, cancel and pay the ETF. That gets you the box and the content for $65/month, which makes more sense. The math for other levels is similar.

    Using anything more than Entertainment, the differences become even more stark. Choice @$55/month first year, plus RSN fee of up to $8.50. Call it $63 all in. That gets you a channel selection similar to YTTV that sells for $50 that has no contract, no ETF and no guaranteed 2nd year nearly doubling.

    So now we’re really back to the problem that was facing ATT with this service from the get go. It is designed to reduce the costs to ATT plain and simple. It is not designed to save the consumer anything at all and doesn’t unless you only compare it to their satellite offerings.
     
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  6. Rich

    Rich DBSTalk Club DBSTalk Club

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    Powerful statement, well said!

    Rich
     
  7. dreadlk

    dreadlk Hall Of Fame

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    AT&T really needs to come up with a new plan, They are still playing from the early 2000's playbook while other companies are giving you a lot more value for your $$.
     
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  8. Rich

    Rich DBSTalk Club DBSTalk Club

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    Wouldn't you think they'd see that? Can they really be that stupid?

    Rich
     
  9. dreadlk

    dreadlk Hall Of Fame

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    You would think so but I know business people with small stores that fall into that same trap. I watch as they lose business and then they seem to think increasing the markup is the solution. At some point you try to explain this to them, but they just seem to be focused in on the weekly income. Then at some point the place is a ghost town and soon after it goes out of business. You would expect a large company like ATT to have advisors to get them out of that same rut, but they seem to be stuck in it just like the little guys.
     
    Last edited: Mar 18, 2020
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  10. LTYRS

    LTYRS Member

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  11. lparsons21

    lparsons21 Hall Of Fame

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    Works the same when the bigwigs drive a company to bankruptcy. Little guys/gals get shown the door with a ‘sorry about that’, bigwigs don’t leave until they milk the last big pile of money out of what’s left.
     
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  12. Rich

    Rich DBSTalk Club DBSTalk Club

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    I worked for a large corporation, all the "advisers" we had were busy blowing smoke into unmentionable places...I watched that corporation disappear.

    Rich
     
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  13. Rosthol

    Rosthol Member

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    So the new AT & T offering is that for rural customer Service?

    I only have 15 meg of Internet.
     
  14. techguy88

    techguy88 Well-Known Member

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  15. slice1900

    slice1900 Well-Known Member

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    That's good, the only companies who should consider keeping their buybacks going are ones like Apple or Microsoft who have so much cash the buybacks they do hardly make a dent.

    I wonder if AT&T will be in line with their hands out looking for a bailout like the airlines, trying to blame coronavirus on their woes and not accepting that taking on giant debt buying Directv and then Warner is most of the reason no matter how bad things may get in the next few months.
     
  16. Rich

    Rich DBSTalk Club DBSTalk Club

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    I would think Directv's satellite service fits your needs much more than a streaming site.

    Rich
     
  17. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    Or trying to blame their woes on the virus. Although I'm sure there is enough underlying hatred for AT&T that some wouldn't mind blaming COVID-19 on AT&T. :D

    There are risks in business ... AT&T took a risk when they bought DIRECTV several years ago. AT&T took a risk when they bought HBO/TimeWarner last year. Those risks were taken based on certain projections. I doubt that a virus such as COVID-19 was part of any company's projections. A pandemic shutting down major portions of the country with the expected loss of jobs and an effect on the customer's ability to pay is not generally on the radar for most companies. So I would not rule out blaming any business downturn for any business on COVID-19.

    When Puerto Rico was hit by a hurricane it virtually wiped out satellite service to the country. Some people could have their dishes and equipment replaced, but others did not have a home to receive the signal or the ability to pay. It was a major hit on the satellite companies. While satellite is a good service not requiring a lot of local infrastructure (electric power and a view of the satellites) one still needs a place to put the dish (a home or business) and the money to pay for the service.

    This will not be an easy year for any company.
     
  18. slice1900

    slice1900 Well-Known Member

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    Well sure, but a company that's returning capital to shareholders via buybacks while it is currently carrying $170 billion in debt (or whatever, I don't have current figures) is clearly not preparing for ANY black swan type events.

    This is why I really like the idea of barring any company that accepts government bailouts from every buying back stock again, and there should also be restrictions on paying dividends to not allow instituting or increasing dividends so long as the company has net debt on the books. Airlines have bought back tens of billions in stock in the last few years, and now think they deserve a $50 billion bailout. Had they been more responsible and saved for a rainy day (or at least managed their affairs well enough they had a line of credit of sufficient size they could draw on to cover this) they would not be in this position, so I guess the government has to impose limits on them they are too selfish to impose on themselves.

    Any travel related business should have accepted this long ago as maybe they didn't have a pandemic on their radar screens, but they certainly should have had terrorism on their radar screen and it could easily have similar effect.

    A company like AT&T really shouldn't see all that much impact - people are still using cell phones and internet. Hell they are using them more than before, they are probably getting calls for people who want to spend MORE on their plans now. People aren't likely to cancel their TV while they are stuck at home, though they may cancel it afterwards if the bills start piling up. Still, Directv is not that large a part of AT&T's overall business, and they've continued to buy back stock while Directv is losing millions of subscribers so they couldn't argue losing another few million would have a major impact.

    They may be seeing some impact from commercial customers like me who are shut down and suspended their Directv service. Or at least they would if more of them knew it was possible. I wouldn't have known to call if I didn't read this forum where people mention it all the time, I just didn't know for sure a commercial customer could do it until I called in a couple days ago to try.
     
  19. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Gold Club DBSTalk Club

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    Any company that relies on discretionary spending should worry. While there is an immediate need for AT&T's other services they still need to collect payment for those services. The pledge to not disconnect non-pay customers during the pandemic just increases the losses for customers who end up not paying until whenever the pledge expires.
     
  20. wmb

    wmb Godfather

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    True, but the alternative is to cut them off, terminate their agreements, and hope to collect ETFs. If they keep them around, and charge them, there is a possibility to recovery funds with interest over time.


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