The numbers are staggering. And if you have any doubts why AT&T was happy to sell a 30 percent stake in DIRECTV at a loss, just look at them.
In the last five years, AT&T’s TV services, which include DIRECTV, U-verse and AT&T TV, have lost a net of 9.5 million subscribers, plummeting from 25.3 million on March 31, 2016 to 15.8 million on March 31, 2021.
Considering that AT&T TV has more than 500,000 subscribers by the company’s most recent public disclosure, that means that DIRECTV and U-verse have combined for a net loss of more than 10 million subscribers during that time. (AT&T TV’s streaming services, formerly known as AT&T TV Now and DIRECTV Now, didn’t launch until November 30, 2016.)
By comparison, Comcast lost 3.3 million subscribers from the fourth quarter of 2015 to the fourth quarter of 2020. (The cable operator will not release its 2021 first quarter report until next week.)
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In the last two years, AT&T has lost 6.5 million video subscribers. Total video subs on March 31, 2019: 22.3 million Total video subs on March 31, 2021: 15.8 million.
It’s unclear how many subs DIRECTV and U-verse have lost separately; AT&T does not break out the numbers for each service, choosing to lump all three TV units under the category of ‘Premium Video Connections.’ But it is clear that the defections are nowhere close to ending. In today’s 2021 first quarter report, AT&T said the premium video department lost a net of 620,000 subscribers.
AT&T announced in February that it has sold a 30 percent stake in DIRECTV to private equity firm TPG in a transaction giving the telco $7.8 billion in cash. The telco bought DIRECTV in 2015 for $49 billion, but most industry analysts agree that the satellite TV industry is in rapid decline and today’s report only reaffirms that.
TPG and AT&T said they will establish a new company named DIRECTV that will own and operate the satellite TV service as well as the streaming service, AT&T TV, and the AT&T-owned U-verse.
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Under the agreement, the new DIRECTV will be governed by a board with two representatives each from AT&T and TPG as well as a fifth seat for the CEO, who will be Bill Morrow, a top AT&T executive.
The AT&T-TPG deal is expected to close in the second half of this year.
Have a question about new TV technologies? Send it to The TV Answer Man at swann@tvpredictions.com. Please include your first name and hometown in your message.
— Phillip Swann
TPG has NOT…repeat…NOT put ONE PENNY into the hands of AT&T and I WILL BET THE REN that “deal” WILL DIE as TPG ultimately finds out they have “offered” to buy a DEAD BODY !
DO NOT “believe” in ANYTHING the DESPERAT ASSCLOWNS at AT&T “say” ALL LIES and DOUBLE TALK…AT&T is a DEAD MAN WALKING…THEY FULL WELL KNOW IT and are doing EVERYTHING they can to keep the TRUTH from getting out.
IT WILL of course FAIL and AT&T will join the PERMANT DEATH of MANY other antique and incompetent companies and THIS time they will
NEVER return in ANY FASION…watch the circus when the word that is UNDENIABLE gets out to even the OLD TROLL “investors” that STILL need to buy diapers with the dividends money that will dry up and blow away faster then S&&T thru a GOOSE !!! DIE AT&T…we are rooting for your imminent DEATH !!
Dave, don’t be so wishy washy, do you like DirecTV or not? I think you must have stock in the company
the ultimate question is, did AT&T kill DirecTV or did the changing viewing habits/streaming kill their subscriber base? Obvious to me that its a combination. But, I think AT&T is the biggest roadblock in making DTV successful (on whatever that level is).
AT&T hasn’t Killed DirecTV yet,
BUT they keep working on the Murder.
If the ASS CLOWNS would bring Customer Service
(ALL of it) Billing, Tech Support, and the NEW Customer Dept
BACK to the USA, It would Survive and Flourish.
The other problem of HIGH Prices also has to be addressed.
And do NOT let ANYONE from AT&T
be involved in Running the NEW DirecTV
Phillip, You mentioned U-Verse.
What is left of it ?
I thought AT&T was abandoning U-Verse TV
Are they still going to keep U-verse Internet ?
Where does FIBER fit in ?
TPG and AT&T said they will establish a new company named DIRECTV that will own and operate the satellite TV service as well as the streaming service, AT&T TV, and the AT&T-owned U-verse.
What will U-verse consist of ?
An AT&T tech who tried to revive my DSL line (didn’t work) told me the rumors are flying through the company that AT&T wants out of the telephone business and internet. The internet is no rumor as I have been told if I am one day late on my DSL line, it will be cancelled and not re-hooked. Techs have told me for at least five years they cannot get new parts for DSL because company refuses to order them telling tech to salvage lines turned off for parts. It really gives AT&T customers a lot of faith in where Direct TV is headed.
That’s ridiculous. AT&T is EXPANDING their internet service, and just installed 1 GB fiber across most of the southwest in the last 2 years.
They might be getting out of DSL, but that’s because DSL is obsolete.
Direct TV is losing customer s because people don’t have the money is to expensive going to streaming