![]() AT&T plans to release its streaming competitor, HBO Max, early next year. The move was spurred at least in part by the changing media and digital landscape, and now that AT&T owns WarnerMedia, it’s also jumping into the field that is hurting TV providers so badly: streaming. That media unit, now called WarnerMedia, is the parent company of Warner Bros., HBO, and several cable networks including CNN, TBS and TNT. The company also completed an $85 billion purchase of Time Warner last year. Its DirecTV purchase wasn’t the only major foray that AT&T made into TV and movies. (Photo by Justin Sullivan/Getty Images) Justin Sullivan/Getty ImagesĪctivist investor takes a big stake in AT&T, pushing for spinoffs and major changes AT&T is going to report third-quarter earnings after the closing bell. SAN FRANCISCO, CA - OCTOBER 23: Pedestrians walk by an AT&T store on Octoin San Francisco, California. Analysts have predicted those losses will continue. DirecTV Now, the company’s direct-to-consumer live TV service which was recently rebranded as AT&T TV Now, has been bleeding subscribers.Īt the end of the fourth quarter of last year, AT&T reported that the service had 1.6 million customers. (AT&T does not disclose subscriber numbers for the two services individually.)ĭirecTV’s problems extend beyond traditional satellite customers, too. As of the second quarter of this year, the two were down to a combined 21.6 million subscribers, a drop of roughly 17% in just four years. When AT&T bought DirecTV, the satellite service had 20.3 million US customers, and AT&T’s own U-verse cable system had another 5.7 million, for a total of 26 million. This strategy is driven by the unique portfolio of valuable businesses we’ve assembled across communications networks and media and entertainment, and as Elliott points out, is the foundation for significant value creation.” And even the dominance that traditional providers like DirecTV had over delivering live television has been cut into by digital players like Hulu Live, Sling TV and YouTube TV.Īnd, Power noted, DirecTV rivals like Comcast and Charter also provide internet, which has helped them retain customers in a way DirecTV can’t.Īsked for comment on this story, an AT&T spokesperson directed CNN Business to a statement it released Monday in which it said, “AT&T’s Board and management team firmly believe that the focused and successful execution of our strategy is the best path forward to create value for shareholders. People could access their favorite shows on the internet, making live and appointment television far less necessary for millions of people. Netflix, Amazon Prime and other streaming businesses made cord-cutting a viable option for many television customers. (T) bought DirecTV just as the pay TV market began to dramatically - irreversibly - change. ![]() “They were facing wireless competitive pressures and seeking a way to diversify,” he said. Will Power, a senior research analyst at Baird, told CNN Business that AT&T bought DirecTV because it was looking for something that would expand its offerings and “help differentiate them in the market.” It specifically called out the DirecTV acquisition in the letter, saying the move has had “damaging results.” Now DirecTV is flailing badly enough that it is at the heart of an activist shareholder revolt against AT&T’s business strategy.Įlliott Management, an activist hedge fund, released a letter to AT&T’s board Monday in which it said that it has taken a 3.3% position in the company and wants to see changes. Four years ago, AT&T purchased DirecTV for $49 billion, or $67.1 billion including debt.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |