AT&T Says DIRECTV NOW at $50 a Month is ‘Sustainable’




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A young woman is sitting in her kitchen and is loking at her receipts at home while using a smart phone

A young woman is sitting in her kitchen and is loking at her receipts at home while using a smart phoneLast month AT&T raised the price of DIRECTV NOW to $50 a month and cut many channels from the service. Now during AT&T’s 1st quarter, 2019 earnings call AT&T’s CEO opens up about the price hike.

“I think we’re getting to a place now where the product, we all look at it and say, ‘OK, this is a sustainable place if you can get the advertising revenues to where we think we can get them,” AT&T’s CEO Randall Stephenson said.

It seems that AT&T is hoping that the higher profit margins DIRECTV NOW gets at $50 will offset the loss of subscribers. Today AT&T announced that DIRECTV NOW lost 83,000 subscribers in the 1st quarter of 2019. This is compared to the 4th quarters of 2018 when DIRECTV NOW lost 267,000 subscribers.

AT&T has been warning that DIRECTV NOW would likely lose subscribers now that has come true. In total AT&T lost 544,000 TV subscribers in the 1st quarter of 2019 up from a loss of 391,000 TV subscribers across all of their TV brands in the 4th quarter of 2018.

What do you think of DIRECTV NOW’s new price and packages? Leave a comment and let us know what you think of AT&T’s current DIRECTV NOW strategy.

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