AT&T Is Hoping DIRECTV NOW Will “Yield Higher Customer Lifetime Value”




Channel Surfing Man

Channel Surfing ManFor years now traditional pay-TV services have been looking for ways to fight cord cutting. Now AT&T seems to have found their solution with DIRECTV NOW according to analyst Scott Goldman.

“The company’s top strategy to mitigate cord-cutting is DIRECTV NOW,” wrote Jefferies analyst Scott Goldman, who presented his take after meeting with AT&T management.

“Management is focused on providing tailored offers to drive lower churn over time,” he wrote. “While DIRECTV NOW carries lower margins, management believes the platform could ultimately yield higher customer lifetime value when leveraging the value of collected consumer data and the potential for adding broadband and/or wireless to the mix.”

So far AT&T has seen rapid growth in their DIRECTV NOW service that will likely top 1,000,000 subscribers this month. The question now is can DIRECTV NOW keep these subscribers.

Only time will tell how successful AT&T is with their plan to counter the losses from cord cutting.

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