One of the leading internet providers in the country, AT&T®, has accepted the fact that the launch of their comparatively low-priced latest streaming service, DirecTV Now® has cannibalized subscriptions to AT&T’s DirecTV® satellite offering. However, the officials from AT&T® do not seem too worried because they have just unveiled a new deal for DirecTV Now® instead of focusing on DirecTV®.
As per reports, the telecom company will be providing a Roku Premiere Box to their new streaming subscribers. The price of the Roku Premiere Box is approximately $70 but customers will have to pre-pay AT&T® for two months of DirecTV Now® subscription. The cable-like live service, DirecTV Now® that offers customers access to over 60 popular channels for $35 per month become available to Roku users last month.
Reports indicate that AT&T® is all set to increase their promotion for DirecTV Now®. The telecom company recently launched their first national ad campaign for the streaming service and it featured Mark Wahlberg. The CFO of AT&T®, John Stephens said that the telecom company had “deliberately pulled back on marketing to give the platform time to mature and improve”. He added that customers should “expect us to be more aggressive with DirecTV Now® in the second half of the year, with additional features and content.”
It seems that the telecom company is embracing the appeal of DirecTV Now® to attract potential cord cutters to their streaming service. The officials from the telecom company had targeted young people and the ones who did not have a subscription to a traditional satellite video or cable service last year.
AT&T® Entertainment Group Chief Marketing Officer, Brad Bentley added that people are “looking to cut the cable cord may not always know the best place to start. We’re making it easy by eliminating up-front cost and providing a cost effective solution to stream the content they crave from their living room couches.”
The CEO of AT&T®, Randall Stephenson had earlier indicated that the “churn was up significantly” for DirecTV®, particularly among the ones who prefer not to buy the service as part of a bundle. He added that it included “some cannibalization” from DirecTV Now® too, but promised that they are going to “make some adjustments” to the marketing of DirecTV®. However, it seems that the telecom company has shifted their entire marketing focus to DirecTV Now®.