AT & T TV broadcasting streaming service, DirecTV Now, does not do it so well. Together with the AT & T revenue in the fourth quarter released this morning, the company announced a tremendous loss of 267,000 DirecTV Now subscribers. This left AT & T with fewer DirecTV Now customers at the end of the year (1.6 million) than in Q2 (1.8 million).
The company attributes the decline to the end of the promotional package price, which sometimes sees a service that is estimated at $ 10 a month for an introductory period. He also offered gift gadgets – such as stickers for putting Roku or Apple's TV boxes – to encourage registrations.
AT & T says its "reduced introductory offers ended," resulting in a dramatic loss.
But it's masking more concern. DirecTV Now subscribers did not see the value when paying the full price for streaming live TV through the AT & T service, although its streaming packages start at $ 40 a month – what is the competitive price for the prices among similar live TV services. For example, Hulu with Live TV only raised prices for its basic television package to $ 45 a month, and YouTube TV raised its price to $ 40 a month in March last year.
Even the low cost of the weak package of Dish's Sling TV last summer offset the base package of $ 5 a month.
Subscribers who are starting DirecTV Now you do not have to do it because you are not interested in streaming TV – they can only find the lack of DirecTV Now product.
The area of the cloud DVR function, for example, offers only 20 hours of space to record and save emissions for a month. Sling TV and Hulu offer 50 hours of storage. DVR on YouTube TV is unlimited. Several services today offer to save emissions for much longer than 30 days.
The DirecTV Now interface is quite basic, compared to rivals that compete today to make services better personalized for customers. DirecTV Now, meanwhile, believes that marking favorite channels or bookmarks shows in the library a form of personalization.
The company also puts its eggs in a number of different baskets when it comes to streaming. Instead of just offering a package that users can customize with add-ons, it offers more streaming services. While DirecTV Now offers nuclear price plans that increase the number of channels available, AT & T additionally today operates with a second, low-cost, entertainment-focused entertainment service called WatchTV, which comes complete with some AT & T wireless plans and a large the measure was supposed to reduce the consumption of a wireless subscriber.
Moreover, the division of WarnerMedia from the company is another service later this year to use the new WarnerMedia properties of AT & T, such as HBO. And HBO has its own annoying offer, also with HBO SEGA.
This means that AT & T's DirecTV Now will not only compete with other live TV services, but will compete with other AT & T streaming services.
Of course, it can be argued that it is not fair to position a television streaming service against the one who is focused on a movie, since the upcoming offer "WarnerMedia" from direct to consumption will be. But at the end of the day, consumers have only a very extra bucks per month to spend on streaming. And they do not look like falling Netflix.
Instead, they choose among dozens of options to adapt cables for cable cutters ranging from a real a la carte television, as well as to Amazon Channels, to release television and movies, as well as the The Roku Channel, to live television 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 inserted into that mix.
More worrying about the future of DirecTV Now is that AT & T believes that the answer to concerns is to increase prices and reduce the number of channels. As Wall Street recently announced Journal, AT & T execs think that newcomers, such as YouTube TV on Google, subsidize unprofitable service. AT & T's director, Randall Stevenson, said in December that DirecTV Now would not do so – in fact, it is in the process of "cleaning the content" to keep prices around "$ 50 to $ 60" – which means at least $ 10 a month more than it is today.