AT&T just announced that their DirecTV service had a net of 328,000 video subscribers in the first quarter, against the 60,000 net additions which it had in the 2015 first quarter. At the same time, the company’s longtime TV service, UVerse, has lost around 382,000 subscribers in the first quarter, even while the telecom giant tries to get many of those customers to come over to DirecTV.
But after the first quarter report, executives from AT&T took questions from stock analysts, and revealed the following four things about developments following DirecTV merger last year.
The acquisition has caused increased revenue
When doing a comparable revenue analysis, AT&T’s consumer profit came up three percent in the first quarter of the year, and the company says this is from both DirecTV subscribers as well as boosted broadband sales, thanks to uptake on bundled offers. Three percent may not be as high as the company had hoped for, but the acquisition certainly is helping them recoup from UVerse sub losses.
There are three new DIRECTV streaming services coming up
AT&T also announced that its offering three streaming services come fall, and none of them will carry the requirement of a DirecTV subscription. That means there’s no need for a Dish so that you can watch TV. According to AT&T executives, these streaming plans will hit the market by fall, even though the company is still in talks with programmers to allow the sale of their channels online. Execs also brushed off enquiries about the charges for an online service.
DirecTV streaming services will go for cord-nerves
According to AT&T, the streaming services will be aimed at the portion of consumers called widely as cord-nerves, which are mainly young consumers that have never bought their own pay TV subscription. According to company officials, the estimated numbers run up to around 20 million. The people buying DIRECTV and UVerse at this time, according to the provider, are “customers who generally want a subscription video product in their home, with three or four televisions connected”. This is significantly different from the marketplace they’re planning to get a grip in, and will place AT&T in direct completion with other streaming services such as Netflix and Hulu. The former is already supported in 4K programming mode on rival Dish’s Hopper 3 DVR.