AT&T Favors DirecTV Over U-Verse, Pushes New Customers To Satellite TV

DirecTV Packages, DirecTV Select Package

Why is AT&T directing new customers to get DirecTV packages? What are the best features of the DirecTV Select package? Are there new offers in your U-verse subscription?

AT&T is pushing new customers towards the DirecTV satellite TV service, which they acquired last year. Interestingly, U-verse, their longtime TV service, is being phased out in favor of the new acquisition. That means the telecom giant is set to give up on competing with cable through phone lines.

The telecom service provider has stopped building U-verse set-top boxes, and any new customers are being asked to move to its satellite unit, which is for the company entails lower hardware and programming costs. According to them this is the first stage of achieving a ‘home gateway’ to unite all AT&T services, as well as a central hub which can deliver video to any device.

This signals the company’s promise to the figure $2.5 billion in annual cost savings from the purchase of DirecTV last year. Having been under significant pressure to boost profit margins, the company will nevertheless let current U-verse subscribers retain their service. There are also new promotions being offered to those customers.

New subscribers are being asked to take on DirecTV packages, and AT&T says, “…we are leading our video marketing approach with DirecTV.” The telecom company said it would heed to the needs of U-verse customers, and still has “attractive and compelling options” for them.

What DirecTV Gives Them

DirecTV gives AT&T a national TV offering, and significantly lower programming costs. The satellite service has 20 million subscribers across the nation, which means greater leverage when the negotiating with media companies for broadcasting rights. Compared to U-verse customers, DirecTV carries lowered content costs by around $17 a month. This means the satellite service is more profitable.

Besides, if the TV feed is moved to satellite, AT&T gets a lot of its broadband pipe freed up. With that data traffic load removed, the company can sell faster broadband speeds and charge more for internet services.

Towards its stated aim of combining internet, satellite TV and wireless into a single homed device, the company has launched the ultrafast GigaPower home connection that will soon hit 38 cities and 20 states. This is a fiber-to-home connection, but since there are homes which cannot avail this service, they are also developing a single-layer multipurpose hub which will send online streaming video to TVs and mobile devices. It will also air on-demand shows and Live programs.

Add a Comment

Your email address will not be published. Required fields are marked *