In today’s world of digital streaming services, some companies want to go big or go home. AT&T and its new DirecTV Now service aims to attract more viewers to digital streaming, as its total video subscribers in the United States have declined. Either way, its announcement that it has gained 300,000 subscribers means AT&T is slowly making a mark in the digital streaming industry as well.
The aforementioned statistic is courtesy of a Securities and Exchange Commission filing it had disclosed recently. The 300,000 subscribers is on top of the 491,000 subscribers it already added in the first half of 2017.
The Dallas-based telecommunications company said that it also lost around 90,000 subscribers through a combination of unfortunate circumstances. These include some hurricanes, competition from other players and online services, and higher credit standards.
Interestingly, this more active stance of AT&T towards digital streaming is perhaps in conjunction with its aim to become more than just an internet, wireless, and phone service. Its recent acquisition of DirecTV and the pending deal for it to buy Time Warner is likely proof of this. It can be remembered that popular show “Game of Thrones” and comic book icon “Superman” has made its home with Time Warner.
Should this acquisition happen, then AT&T will likely jump start its success once more given that “Game of Thrones” is a popular series. It can be remembered that this show from HBO is based on the popular “A Song of Ice and Fire” series by George R. R. Martin.
AT&T, DirecTV Now, Challenges
However, AT&T still has some more challenges to face if it wants to gain traction in the telecommunications field when rivals like T-Mobile are constantly releasing upgrades as well.
This can be noticed when AT&T also said it had 900,000 less handset upgrades now than in 2016. However, they did assure that this didn’t affect the growth of its customers.
The previous calamities and pre-tax earnings have apparently had revenue falling and declining by $90-million and $210-million respectively. It appears there might be other deductions this year as well.