AT&T has officially kicked DirecTV, which has been hemorrhaging subscribers, to the back burner of its pay-TV strategy. But its new internet-fueled competitor likely won’t stanch the cord-cutti…
Plus, thevoice-enabled remote control is integrated with Google Assistant, which lets you instruct it to tune to a channel, search for shows or movies, provide a weather report or even dim the living-room lights if you have a compatible smart-home setup. “We’ve built a next-generation, premium entertainment experience that can be the hub of your home,” said G.W. Shaw, VP of video product management.
The problem with the new offering? While AT&T TV has attractive intro pricing, the packages require customers to lock in to two-year contract — with prices nearly doubling after 12 months. Asked whether AT&T is concerned about subscribers’ sticker shock once their rates go up, Patel said, “We feel really good about the product experience. It’s very unique.” He added that because AT&T TV works over any broadband connection, “it expands the markets we can serve,” including in locations like apartment buildings where DirecTV’s satellites can’t reach.
Pay-TV services still throw off tons of cash, but the issue for AT&T is that it’s a shrinking business that’s been dragging down the company’s growth profile. Its video entertainment revenue last year was $31.1 billion, down 3.7%.
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