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08 Dec

AT&T Thrilled With The Early Demand For DirecTV Now

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Demand For DirecTV Now

AT&T launched their latest streaming service, DirecTV Now, a few days ago. The major telecom company had earlier promised that the new streaming platform would deliver contents without any lags or technical errors. However, customers experienced a few technical errors during the launch of DirecTV Now and it raised concerns among certain analysts and subscribers. Nevertheless, AT&T recently stated that they are thrilled and happy due to the initial interest shown by subscribers towards DirecTV Now.

In a recent conference, AT&T’s CEO and president, Randall Stephenson, said that, “The early demand has been rather dramatic we’ve been pleased with it.” He also added that the CEO of AT&T Entertainment Group, John Stankey, informed him that the company has already met their target for December subscribers on the launching day of DirecTV Now.

He said that the demand is “exceeding expectations”, particularly in the apartment buildings. In addition to that, Stephenson also stated that he was highly pleased with the addition of Cinemax and HBO, which will be available to the subscribers at an additional price of $5 a month.

DirecTV

DirecTV Now Service

Stephenson added that AT&T is “perfectly content” with “lower, thinner margins.” He said, “Early on, I do expect the margins to be fairly thin.” AT&T officials have also claimed that approximately half of DirecTV subscribers will stream a few of their content by the end of this year.

“The advertising opportunity here we think is rather significant,” Stephenson said. He continued by stating that one of the top priorities of the company next year is to “really begin to scale those advertising models” for DirecTV Now. Reports say that the company is also hoping to pair their offerings such as wireless and DirecTV or broadband and wireless.

Stephen added that when this happens, “churn goes down precipitously” referring to the customers, who do not review their services. “We have high expectations for churn reduction in this environment,” Stephenson said. He also added that the latest streaming platform is “a 5G service being launched on a 4G network.”

Stephenson hopes that the launch of these new products will boost the efforts to bring 5G, but he refused to shed more light on AT&T’s merger with Time Warner during the conference. “We do not compete. This is a classic vertical merger,” AT&T CEO commented.

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