This is DTVs CEO:
May 14, 2019 - AT&T CEO Randall Stephenson said DirecTV’s rapid subscriber base decline will continue this year as his company lets lower revenue customers leave the service as their contracts expire. Stephenson said getting low ARPU customers off of DirecTV is key to stabilizing AT&T’s video business. He warned that it will churn rates to spike but said that AT&T doesn’t see a way to get them to profitable levels.
During the most recent quarter, AT&T reported a net loss of 544,000 traditional video subscribers and a net loss of 83,000 DirecTV Now subscribers. The company’s total 627,000 video subscriber losses accounted for approximately half of 1.28 million subscribers lost by the U.S. pay TV industry in the first quarter.
The good news is that AT&T’s video business should achieve EBITDA stability this year and into 2020, according to Stephenson. He said going forward, DirecTV’s “thin client,” a streaming version of DirecTV that’s debuting later this year, will be the workhorse for DirecTV, and will bring price levels down for customers that are struggling.
Stephenson said sustainable content agreements were also a key to future plan.
AT&T CEO Randall Stephenson said that DirecTV’s rapid subscriber base decline will continue this year as his company lets lower revenue customers leave the service as their contracts expire.
So it sounds like the bullet points are;
- They are bleed customers still and are actually now encouraging it to get smaller
- If you signed up on an incentive promotion they'll let you go if you dont agree to full price (no more free Sunday Ticket?)
- They will walk away from expensive content relative to delivered audience
- They have some "thin" streaming plan in the works.