Recent Surveys Sound Caution for Internet Provider’s Streaming Services

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AT&T’s live streaming service, DIRECTV NOW® has been struggling to maintain its customers for some time now. The recent survey conducted by UBS brings the whole picture into light as the truth behind this withdrawal has been revealed. Customers clearly prefer other platforms for streaming services to DIRECTV NOW®.

The UBS Evidence Media Lab Consumption survey conducted a poll involving 2,000 respondents. They found out that those who were looking to subscribe to a TV streaming service preferred Hulu’s service. This was followed by those who wanted YouTube TV by Google. AT&T’s DIRECTV NOW® occupied only the third spot. The UBS speculates that Hulu and YouTube TV will certainly have more subscribers than other streaming service providers by 2020.

Although one of the fastest internet provider in the US, AT&T® has every reason to worry for this, because more and more people are willing to cancel their TV subscriptions now for streaming options. The study revealed that around 20% were willing to cancel their traditional plans. This is a huge increase from previous year’s statistics.

AT&T’s Recent Outcomes are in Line with the Survey Findings

AT&T® announced its fourth-quarter results towards the end of January. It revealed that the company lost around 267,000 DIRECTV NOW® subscribers. Furthermore, it also lost 391,000 of its traditional video subscribers.

In one of the recent company conferences conducted after the new announcements, the management remarked that the drop in the number of customers was mainly because some of the promotional services were over. This led to un-subscription by many of the low-value, high-churn customers.

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Reading the bigger picture from the survey as well as the results from the last two quarters of 2018, it is evident that many customers dislike the services provided by one of the best internet provider.

Right now AT&T® is concentrating on paying off its debt after the company purchased Time Warner for $85 billion last year. This acquisition meant that the company had a lot of video content up its sleeve. Although it is a smart move, the company will now have to wait until it retrieves some of its expenses before it goes on to purchase any additional services to reinforce its TV subscription services.

AT&T’s most important revenue drivers are its wireless services. This means that its focus on growing the top and bottom lines will help it patch up its wireless industry position.

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