AT&T, a modern media company, announced on Wednesday that it had lost almost 267,000 DirecTV Now consumers in the fourth quarter after its release. It also reported a staggering net loss in subscribers on the same quarter.
According to AT&T, its goal is to create the best entertainment and communications experiences to its consumers when it presented DirecTV Now in November 2016. It also did not miss out the fact that it wanted to lure out people from their traditional TV setting. After a positive start with loads of promotions, the company managed to attract 267,000 subscribers within a month of launching, said the streaming service.
On the second quarter, only 152,000 were added on the list of committed subscribers. However, the company conjectured a thinning of its subscribers on the third phase since its introduction to the public, losing a total of 359,000 customers. This just proves the weakening economy of streaming though AT&T already pushed for a permanent discount as well as free streaming devices during two to three months of service.
With DirecTV Now, subscribers can watch more than 125 channels of live and TV sports, and over 40,000 on demand shows and movies. It offers variety of high-quality shows, unlike pay TV, with live streaming services you can easily sign up and move from one package to another, as per Dan Rayburn, a streaming media specialist. However that is not the case. People are missing local channels which is why there is a sudden decline on the streaming-services. Another reason is with a specific package, one can’t get local sports-themed shows.
DirecTV Now currently has 1.6 million subscribers from 1.86 million. It went down significantly after AT&T Chief Executive Officer Randall Stephenson suggested a new price range of 50$ to 60$ per month from 35-40$ a month. Though it first offered budget friendly plans, rates climb so does Hulu TV/Netflix or Google’s Youtube TV pricing. Stephenson also added that DirecTV Now will be under content thinning this year following its price increase.
Rayburn said that the decline on the streaming economy only proves that big companies like AT&T is struggling to find profit. And with rivals competing to attract cord-cutters like Netflix, which became popular especially on teens, AT&T’s DirecTV Now is at risk of bleeding subscribers. The future of streaming industry is still undecided but company as profound as AT&T, we could only hope for a newer and better batch of branded streaming services.