DirecTV Now, AT & T's live TV streaming service, is not performing well. In addition to AT & T's fourth-quarter earnings released this morning, the company saw a significant loss of 267,000 subscribers to DirecTV Now. At the end of the year, AT & T had fewer customers of DirecTV Now (1.6 million) than in the second quarter (1.8 million).
The company attributed the decline to the end of pricing for promotion packages, where service was sometimes seen for just $ 10 a month for an introductory phase. It also had device giveaways – such as Roku streaming sticks or Apple TV boxes – offered to encourage sign-up.
AT & T says its "reduced introductory offers are over," which has led to a dramatic loss of concern, concern. Subscribers to DirecTV Now saw no value in paying the full price for streaming live TV through AT & T, even though the streaming packages start at $ 40 per month ̵
Even the Low-Cost Skinny Package from Dish's Sling TV Has Moved The basic package was increased by $ 5 per month last summer.
The subscribers who abolish DirecTV Now do not necessarily do so because they have no interest in streaming TV – they only find that the product DirecTV Now is missing.
For example, the Cloud DVR feature offers only 20 hours of storage space and stores shows for a month. Sling TV and Hulu provide 50 hours of storage. The YouTube TV DVR is unlimited. Today, multiple services also offer the ability to save shows for more than 30 days.
The DirecTV Now UI is quite simple compared to competitors competing today for customizing services to customers. DirecTV Now now thinks it's possible to tag favorite stations or bookmarks in a library, a form of personalization.
The company also lays its eggs in different baskets when it comes to streaming. Instead of offering only one package that customers can customize with add-ons, several streaming services are offered. While DirecTV Now offers tiered pricing plans that increase the number of channels available, today AT & T also operates a second low-cost, entertainment-centric service called WatchTV, bundled with some AT & T mobile plans, primarily for the exodus of wireless subscribers
In addition, the company's WarnerMedia division will launch another service this year to use AT & T's newly acquired WarnerMedia properties, including HBO. And HBO also has its own over-the-top offer with HBO NOW.
This means that AT & T's DirecTV Now not only competes with other live TV services, but also with other AT & T streaming services.
Of course, one could argue that it is not fair to make a live TV streaming service more service-oriented than WarnerMedia's upcoming direct-to-consumer offer. But at the end of the day, consumers only have so many extra dollars per month for streaming. And they do not seem to let Netflix down.
Instead, they choose dozens of options to customize their cable cutter bundles, from true a la carte TV through Amazon channels, to free TV and movies like The Roku Channel, for live TV streaming. Services and subscription video services like Hulu. Maybe AT & T believes that if it offers enough variety, at least one of its services will be included in this mix.
Regarding DirecTV, the future believes that AT & T believes that the answer to concerns is to increase prices and reduce the number of channels. As the Wall Street Journal recently reported, AT & T executives believe newcomers like YouTube TV are subsidizing unprofitable service from Google. AT & T boss Randall Stephenson said in December that DirecTV Now will not do this. In fact, it's about to "thin out the content" to keep the price around "$ 50 to $ 60" – which means that at least $ 10 a month is more today.