Now AT&T’s CEO says that buying DIRECTV and Time Warner was the right move. “If you had asked me that question five years ago, I’d be hard-pressed to say it makes sense, in the old world. In the new world, it makes all the sense in the world.” Said AT&T’s CEO Randall Stephenson at the Goldman Sachs’ Communacopia conference this morning.
AT&T is betting big right now that it can turn its TV numbers around in 2020 with the launch of AT&T TV and HBO Max. According to a letter sent to shareholders last week AT&T says that “In 2020, AT&T expects premium TV subscriber trends to improve due to far fewer customers on promotional pricing and the nationwide launch of AT&T TV, which delivers a premium streaming experience. Other factors that may help improve Entertainment Group EBITDA beyond 2019 include: broadband growth due to increased fiber penetration and availability of higher speeds; a higher-quality video and broadband customer base with lower churn and higher ARPU; continued cost management; advertising growth from Xandr and less pressure from declining legacy products.”
For now, we will have to wait and see if this play for streaming with AT&T TV and HBO Max along with advertising growth will pay off. Yet as AT&T’s plan is now just getting underway, it seems that some are becoming impatient to see growth return to AT&T’s TV business.
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