AT&T revenue falls short of estimates as satellite TV sheds subscribers

Discussion in 'DIRECTV General Discussion' started by mjwagner, Jan 29, 2020.

  1. Jan 29, 2020 #1 of 271
    mjwagner

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    AT&T revenue falls short of estimates as satellite TV sheds subscribers

    "AT&T said it lost 945,000 "premium" TV subscribers during the fourth quarter, including from DirecTV, and a smaller number of cable TV subscribers."

    Not sure how much longer they will be able to stick to the - we are only loosing low value subscribers - line...
     
  2. Jan 29, 2020 #2 of 271
    lparsons21

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    It is going to be interesting to see if their upcoming streaming product will pick up the slack. My crystal ball says no since from what we know now, their offerings are going to be a bit too expensive.


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  3. Jan 29, 2020 #3 of 271
    raott

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    That is another huge drop and a huge miss from what the analysts predicted. That company is in trouble. Trying to stem the tied by rolling out a new streaming service that burdens a customer with a high price and two-year contract is going to be a non-starter.
     
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  4. Jan 29, 2020 #4 of 271
    b4pjoe

    b4pjoe New Member

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    [​IMG]
     
  5. Jan 29, 2020 #5 of 271
    grover517

    grover517 AllStar

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    According to one report I saw this morning, Comcast now has more pay TV subscribers than AT&T. Ouch!

    AT&T’s Fourth-Quarter Results Dragged Down by TV Business

    "The company ended 2019 with 20.4 million domestic pay-TV subscribers, dropping behind cable giant Comcast Corp. ’s 21.2 million video customers."
     
  6. Jan 29, 2020 #6 of 271
    CraigerM

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  7. Jan 29, 2020 #7 of 271
    Steveknj

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    Another company getting into a business they had no business getting into. All media is different. I anticipate that within 2 years they will sell DirecTV for pennies on the dollar, perhaps to Dish. They will just cut and run. I think they might hold onto their streaming services if there's any type of success. And they will hold onto HBO Max.
     
  8. Jan 29, 2020 #8 of 271
    b4pjoe

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    I doubt they bought DIRECTV for the satellite service. They bought it for the subscribers. Unfortunately they are losing those subscribers before they can even implement their master plan.
     
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  9. Jan 29, 2020 #9 of 271
    CraigerM

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    They couldn’t have got the streaming rights to do AT&T TV without buying DTV.
     
  10. Jan 29, 2020 #10 of 271
    Rich

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    Wow! When Comcrap beats you...

    Rich
     
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  11. Jan 29, 2020 #11 of 271
    Rich

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    Think they knew beforehand this was gonna happen?

    Rich
     
  12. Jan 29, 2020 #12 of 271
    evotz

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    I think wholesale changes need to be made with DirecTV (perhaps Dish too... I don't know how poorly they are doing)

    In my opinion... DirecTV needs to start moving away from traditional linear TV - I'm not saying that they have to get away from it completely, but some changes need to be made.

    DirecTV's market is going to be rural areas that do not have good Internet connections. I mean... there are still areas (I know because I have many relatives that live in these areas) that are still serviced with dialup or (most of them have switched to...) severely bandwidth throttled cellular connections. These people cannot use Netflix, or Amazon Prime, or Hulu... or any of the other streaming library options.

    In my opinion... what would help is if DirecTV had a service that used the satellite to download shows and movies from these services (or something that AT&T has full control of) into the user's receiver so the user could view them when they wanted.

    I like watching older episodes of SVU on Hulu. DirecTV needs a service where someone can use their phone and say "I want to watch season 13 of SVU tonight" or select specific episodes. Then those episodes are downloaded into the user's receiver - maybe it does it overnight.

    I don't know what technical obstacles might exist and what contracts/financial obstacles might exist... maybe it's too expensive to provide. But people in rural areas that do not have access to cable TV or cable internet would be the main market for this... how else are they going to get the Netflix-like experience that everybody else has? Or maybe that market is just too small.
     
  13. Jan 29, 2020 #13 of 271
    Rich

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    I'd like to know how large that market is. Or how small it is.

    Rich
     
  14. Jan 29, 2020 #14 of 271
    Steveknj

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    And maybe AT&T TV is not a business they should be in either?
     
  15. Jan 29, 2020 #15 of 271
    Steveknj

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    The thing is, as they've proved, that you won't keep the subscribers if you let the business go to crap. So you have to maintain the previous high standards, and give customers what they want. The mistake they made is trying to have it both ways. The way they are doing it is SO stupid it make no sense. If their goal is to get people off satellite, then they need to make it much cheaper for the same service. Who in their right mind would be willing to pay for some bastardized service that winds up costing the same? And still use the old practices of contracts and such?
     
  16. Jan 29, 2020 #16 of 271
    CraigerM

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    I wonder if AT&T TV is just a temporary service to keep customers from leaving until everything except maybe OTA goes VOD and AT&T wants to just have their TV service be HBO/Max?
     
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  17. Jan 29, 2020 #17 of 271
    Steveknj

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    They have On Demand which can do what you suggest. But it's not really stand alone. But the problem with that is contractual more than anything. Hulu, Netflix and others own the rights to a lot of what you are suggesting. Think they want to give that up so that DirecTV can allow you to download content via Satellite? That's why they only allow limited OD where you can only download a few episodes. Linear TV will still be around for 20 years or more, until fossils like me die off. You still need it somewhat for sports. But, I think 5G might eventually be the key here. The hope (of course) would be that 5G will reach those rural areas that currently have no real ISP solution. Once 5G becomes nationwide, then AT&T could be better positioned. I think that's where they want to go.
     
  18. Jan 29, 2020 #18 of 271
    Steveknj

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    That's possible, but I don't see how those motivated to leave because of price, would stay if this services costs around the same (and potentially offers less).
     
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  19. Jan 29, 2020 #19 of 271
    raott

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    Yep. In my opinion, if they want to be a viable linear TV provider, they are going to have to do away with the two-year contracts and deal with the churn of a streaming service. If your service is good enough....you’ll keep the customers. Treat them like crap and they will walk....as they’ve been walking to the tune of a million per quarter.

     
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  20. Jan 29, 2020 #20 of 271
    CraigerM

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    Q4 Conference Call transcript is up.

    https://seekingalpha.com/article/43...-results-earnings-call-transcript?part=single

    As we've shared with you, as we move through this year and we start shifting to AT&T TV, our gross add performance starts to get much stronger. And naturally, when you're able to put AT&T TV, a software-based product with fiber, it's a much more natural combination than a satellite dish and fiber. And so, as we start to roll out AT&T TV now in markets and we move in, we're going to see much stronger performance on the fiber side.
     

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