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AT&T To Launch Full DTV Using The Internet This Fall

Discussion in 'DIRECTV General Discussion' started by CraigerM, May 15, 2018.

  1. May 15, 2018 #1 of 108
    CraigerM

    CraigerM Well-Known Member

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    Last edited: May 15, 2018
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  2. May 15, 2018 #2 of 108
    c_l_phillips72

    c_l_phillips72 Member

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    That’s a high starting price, IMO. If I were to pay that much, I’d stick with regular cable.


    Sent from my iPhone using Tapatalk
     
  3. May 15, 2018 #3 of 108
    machavez00

    machavez00 Hall Of Fame

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    I just bought an Apple TV 4K. No mention of a cloud DVR.
     
  4. May 15, 2018 #4 of 108
    CraigerM

    CraigerM Well-Known Member

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    The cloud DVR was only for select invites on the Beta app but now they are opening it up to everyone but you still have to use the Beta app to get the Cloud DVR.
     
  5. May 15, 2018 #5 of 108
    RAD

    RAD Well-Known Member

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    That's not correct. All you need to do is update the Apple TV DIRECTV Now app to the latest version and the DVR function is there, don't need to be part of the beta anymore.
     
  6. May 16, 2018 #6 of 108
    TDK1044

    TDK1044 Godfather

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    The article states........'The offering is also expected to allow the company to provide service in locations where customers could not receive a satellite signal or in apartment complexes that do not allow satellite dish installation.' Isn't that what DirecTV Now already does? What am I missing? Why would anybody choose the new offering over DirecTV Now and pay more money for it?
     
  7. May 16, 2018 #7 of 108
    P Smith

    P Smith Mr. FixAnything

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    Looks like we need open a new forum here - "ATT OTT"
     
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  8. May 16, 2018 #8 of 108
    VaJim

    VaJim Godfather

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    This sounds interesting. Now they need to do away with the contract concept and reduce the cost of the NFL ST and I 'may' come back. Perhaps the NFL ST will never be available for streaming..??

    Where did they come up with the term OTT (over-the-top)?

    Where is the Smithsonian Channel?
     
    Last edited: May 16, 2018
  9. May 16, 2018 #9 of 108
    slice1900

    slice1900 Well-Known Member

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    I wonder what this "thinner lighter CPE" entails? I can only assume this means it'll use 'cloud DVR' so it will be clients only, no server? Apparently sometime recently Directv deleted all the cloud DVR recordings for local stations that were dropped in a dispute. Stuff like that (and the fact your recordings expire after x days, at least on Directv Now) makes me VERY leery about the idea!

    They claim customer acquisition costs will be a quarter of what they are with satellite, but I think they're fibbing a bit here. They've long claimed CAG of around $800 for satellite. Clearly it doesn't cost them anywhere near $800 to send an installer to your house, but they've never been clear what all that $800 includes. Obviously it includes marketing costs, and it may also include the cost of equipment - though if so that's a fallacy because customers MORE than pay that back with the $7/month fees. They make a ton of profit off those equipment fees, and accounting for it as a lease confers tax benefits as well! If the IPTV CAG is only $200 maybe they think IPTV will be easier to sell than satellite so will need less marketing, or if it includes equipment cost means there's no Genie and you're stuck with cloud DVR.

    He says advertising will go from $7-$8 per thousand impressions today to $30-$35 per thousand impressions by using targeted advertising. But this isn't specific to IPTV, they can do this with satellite. Most Directv customers have an internet connected DVR, so there is no difference in the targeted advertising that is possible with Directv IPTV vs Directv satellite for those DVR/internet customers. This seems like a line targeted at Wall Street analysts who want to hear a good story and lack critical thinking skills.

    The $80-$90 vs current pricing is easily explained - that's the price people get today with Directv if they are good at getting discounts. They can build those discounts into the price structure for IPTV, making it more competitive with alternatives. If the CAG is that much lower (regardless of how they are calculating it) then they will care less if people leave, and won't give people $50 off per month for a year to keep them around. The lower monthly price won't be as profitable per customer, but if the lower price helps them get enough additional customers they'll be more profitable overall.

    They might not have a choice but to charge less if they want to use the same package prices they use for standard Directv, because they'll lose some of the add-on fees. I mean, it would be kind of hard to charge an "advanced receiver fee" if there's no advanced receiver, HD is taken for granted in a product offered in 2018, and charging for 'whole home' when using the customer's network would be rather hard to justify :)

    A couple years ago Deutsche Bank estimated that Directv was paying about $65/customer on average for content, and the APRU was just under $120. The APRU is a little higher now, and that content cost is probably pushing $70 these days.
     
  10. May 16, 2018 #10 of 108
    CraigerM

    CraigerM Well-Known Member

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    Aren't they supposed to use this box for this new service?

    ATTC71KW Wireless STB User Manual Wistron NeWeb Corporation
     
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  11. May 16, 2018 #11 of 108
    Rich

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    Cable Replacement Services such as D*Now have cloud DVRs. Streaming devices like the ATVs don't have cloud DVRs.

    Rich
     
  12. May 16, 2018 #12 of 108
    Rich

    Rich DBSTalk Club DBSTalk Club

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    You do make a good point. Seems like another panic attack...

    Rich
     
  13. May 16, 2018 #13 of 108
    James Long

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

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    DIRECTV NOW raising the price to $40-$60 per month.
    A new offering with "all DBS channels" for $80-$90 per month.
    DIRECTV Premier is currently $115 per month.

    IF (big if) the new "all DBS channels" offering truly is all channels (330+ in Premier according to the DIRECTV website) and the $90 price point sticks it will be a competitive deal. But if it is not a 330+ channel offering or the price drifts up it is not an incredible savings. And the new service will likely be limited in ways that the current satellite service is not limited. Perhaps lower equipment fees will sweeten the deal ... perhaps the offer will be $90 plus equipment fees. Until the actual offer is available to subscribers (not "forward looking statements" that may be altered) I'll read the comments with caution.

    The $15 "advertiser supported" skinny bundle seems optimistic. The article notes that the $30-$35 CPM (cost per thousand impressions) is lower than last year's estimate ($35-$40). Last years estimate for non-targeted ads was also higher ($12-$13 instead of $7-$8 per thousand impressions). AT&T needs to make more money on advertising to have an advertiser supported system - not less. And the introduction of non-skipable ads is a negative. (Perhaps they will have a $30 tier with skipable ads?) Waiting for reality to see what actually is available to subscribers.
     
  14. May 16, 2018 #14 of 108
    CraigerM

    CraigerM Well-Known Member

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    That will be the interesting thing to see if its the same DirecTV SatelliteTV packages offered using OTT because they don't even have all the locals for DTV NOW yet.
     
  15. May 16, 2018 #15 of 108
    NR4P

    NR4P Dad

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    Customer SAC (subscriber acquisition cost) of $800 includes not only the installer, the equipment used, but any and all marketing/advertising to get that customer. Even credit checks as part of activation fees. Essentially just about any cost to get the customers account live is in SAC. Yes even the boxes. They capitalize them over xx years and also depreciate them. The $7/month is income that pays for the SAC, among other things.

    Also the new service does have 20 hours of DVR free. If you want 100 hours, that's $10 extra per month.

    I wonder for anyone that cut the cord 100%, relies on only streaming to their big TV's and mobile devices, what is a typical 1 month internet usage look like. How many TB to cover it with a family of 4? That's the other cost to consider for in home use.
     
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  16. May 16, 2018 #16 of 108
    CTJon

    CTJon Godfather

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    Similar to other offerings I think the real details will make the difference. I believe the new NOW allows 3 simultaneous usage vs 2 for previous - is that enough for many people - probably not. Also, how many people can live with the cloud dvr limitations even with the up charge. I'm a record, watch and delete person but I'm not sure I could live with that - go away for a few days vacation and ??? I don't like the cloud DVR where I don't have control but that seems to be where the world is heading.
    With all this cloud stuff I wonder when the ISP's will limit or greatly increase costs for Internet. Today many make money on the cable TV service along with the Internet but when they lose the cable and that revenue will internet go way up. Remember, when cell phone service started the data was "free" or unlimited and you were charged a lot for more than 100 calls and 200 text a month - then that all changed and changed again.
    Although I don't like the costs I like the DTV model and presentation.
     
  17. May 16, 2018 #17 of 108
    mjwagner

    mjwagner Icon

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    I actually just shook my head and laughed when I read the article. An extra fee for this, an extra fee for that...typical AT&T. It always makes me think that they either think their customers are math challenged or that is their target audience. They like to keep the price they can advertise as low as possible but they make sure that they construct the offering and addons in such a way that almost no one ever pays that price. That sort of nonsense with all the extra fees is one of the reasons people are looking at these OTT offerings as alternatives. Thankfully for me PSVue has all my locals and the other channels I need/want. So my target currently is unlimited DVR storage and 5 simultaneous streams for $40 per month. Clearly DirecTV Now is still missing the mark for me. All that said I do appreciate D being in the OTT space. The more competitors the better. One of the huge benefits of these OTT offerings is the near zero switching friction for the consumer. That will help ensure continued downward pressure on prices. That is obviously tough on the providers as it puts much more pressure on margins but good for consumers.
     
  18. May 16, 2018 #18 of 108
    slice1900

    slice1900 Well-Known Member

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    Presumably, but the manual for that talks about it working with the HS27. Maybe the HS27 is only used with it for satellite - i.e. the C71KW can be standalone for the IPTV product if it uses cloud DVR. That's what isn't clear yet, but in order to save a big wad on CAG they almost have to drop the server from the IPTV product.
     
  19. May 16, 2018 #19 of 108
    slice1900

    slice1900 Well-Known Member

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    Maybe they're able to use the Directv satellite contracts for locals due to the way their IPTV product is delivered (i.e. to Directv owned equipment) rather than the OTT product which is delivered to customer owned equipment? Or maybe they anticipate having all the locals signed for OTT by then? Hard to tell.

    One of the many things about this new service that isn't clear yet.
     
  20. May 16, 2018 #20 of 108
    NashGuy

    NashGuy Active Member

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    Good heavens, man, how many times have I been over this? It's going to be a small 4K HDR-capable box with no hard drive running a custom version of Android TV. It will be similar to, or quite possibly actually be, the C71 box that will be the next-gen version of the Genie Mini. For the OTT service, it will use cloud DVR, without the need for an in-home server.

    No, I doubt they'll ever be able to fully integrate internet-delivered targeted ads with DBS-delivered programming. Maybe they could replace the original ads with targeted ads in local DVR recordings but I don't ever see it happening (and working well) with live TV, in which case the box would have to switch on the fly between the live DBS steam and internet-delivered ads.
     

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