DALLAS, TX – Recently, AT&T has been reporting a decrease in their TV subscriber figures; however, they expressed that they still had faith a turnaround was coming.
As it stands, AT&T TV NOW, alongside DIRECTV NOW and U-Verse TV, are undergoing a net loss in subscriber numbers. In light of these negative developments, investment group KeyBanc Capital Markets had issued a warning to AT&T about their future in the broadcast industry.
KeyBanc Capital Markets says that AT&T enjoys exposure to a wide range of “secularly challenged” businesses, bolstering its ad revenue by selling ad slots to said businesses. However, market analyst Brandon Nispel added to the discussion by mentioning that shrinking subscriber counts for AT&T TV NOW and DIRECTV spell a negative outcome for both services, despite the healthy state of their video monetization.
Analysts like Nispel seem to fear that AT&T is on track to continue losing more of their subscriber base. This is after the report that DIRECTV NOW, U-Verse TV, and AT&T TV NOW all have only a little more than 1 million subscribers between the three of them.
AT&T’s counter-strategy is investing much of its resources into HBO MAX to continue its prominence in the TV industry. However, KeyBanc Capital Markets fears that this will be insufficient, as HBO MAX’s popularity figures are outstripped by that of Disney+’s by a wide margin.
Analyst Craig Moffett acknowledged this disadvantage, causing him to downgrade AT&T’s stock sale value.
Still, AT&T retains its confidence in AT&T TV NOW, as well as HBO MAX, to turn around their losses come 2020. However, it would remain to be seen whether or not their subscriber count losses would continue despite their efforts.
Do you have any insights as to AT&T’s moves to save its subscriber base this quarter? Make sure to let us know in the comments section.