Even as the company nears an all time high valuation, AT&T is in trouble, according to KeyBanc, says a report from Seeking Alpha.
KeyBanc cites growing competition in the wireless market, weak growth in Entertainment Group’s video and broadband businesses, and “weak industry video subscribers,” as the obstacles AT&T is facing, according to KeyBanc Capital Markets analyst Brandon Nispel.
Last month, Nispel wrote that “While video monetization remains healthy, subscriber metrics are not,” going on to say that AT&T TV and DIRECTV subscriber numbers were below expectations for October.
The third quarter numbers show that AT&T lost 1,358,000 traditional pay-TV subscribers in the third quarter of 2019 when you count losses from DIRECTV, U-verse TV, and AT&T TV NOW.
When it comes to streaming, Nispel isn’t optimistic about the success of HBO Max. “We doubt HBO Max will be anywhere near as successful as Disney+ given: 1) HBO Max’s price point of $14.99/month is uncompetitive with Disney+ and Netflix at $6.99 and $12.99, respectively; and 2) HBO Max will not have the appeal of a brand new service.”
Last week, we reported on comments from AT&T CFO John Stephens, who told investors that 2020 will be the year when AT&T brings their numbers back up, with HBO MAX launching and AT&T TV going nationwide. It seems some are not convenced AT&T will turn it around.
This is breaking news. More details coming soon.
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