AT&T has reported that around 5 million people have signed for its DirecTV promotional offer, which gives unlimited wireless service for its customers if they are subscribing to DirecTV. Even though the recent earnings showed that AT&T is losing in the TV, postpaid wireless, as well as net in the broadband arena, the company is insisting that its acquisition of DirecTV is actually helping the company to boost its revenue.
Under the AT&T promo, users who subscribe to DirecTV just have to pay $100 a month for their first line along with unlimited data, $40 for each additional line, and fourth line is accessible at no additional cost. AT&T CFO John Stephens said that the offer helped them gain a hefty 5 million customers, and advised subscribers not to bother on the losses the company is facing in other sectors. Stephens said in a press release that they are just at the beginning stage of integration of the two companies, and would be offering many attractive bundled packages in the days to come.
“I would suggest we’re at the early stages when you think about getting the workforce trained in all aspects of being able to cross-sell and do the bundling and do single-truck-roll installs and so forth. It takes a while,” Stephens said. “And getting 5 million of these customers to sign up for this bundled approach with regard to video and wireless is just the best proof I can offer you that we’ve already done — they’ve already accomplished that this works and that we have a real opportunity to exceed our merger integration synergies.”
AT&T is also planning to launch three DirecTV-branded streaming video services in the upcoming months, namely DirecTV Mobile, DirecTV Now, and DirecTV Preview. Stephens believes that these apps would further increase their subscriber base by the end of 2016.
Some analysts are under the view that even though DirecTV Now may be a success among smartphone users, it won’t be much appealing to customers on other platforms. However, UBS said that AT&T’s success in bundling wireless services and video is good for their upcoming launch.
“Early trends suggest it can,” UBS said in a press release. “Post-DirecTV, new product combinations such as the unlimited wireless offer for DirecTV subscribers attracted 5 million subscribers so far (15 million DirecTV households do not have AT&T Wireless, another 21 million households have AT&T Wireless but not DirecTV). Expectations are low for AT&T’s bundling strategy and strong execution could drive upside.”