DIRECTV & AT&T TV NOW Both Face Subscriber “Challenges” According to Analyst




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AT&T Trucks

AT&T TrucksFor some time now AT&T has been warning that TV subscriber numbers would be decreasing but a turnaround was just around the corner. So far though DIRECTV NOW, AT&T TV NOW, and U-Verse TV have all continued to lose subscribers. Now the investment group KeyBanc Capital Markets announced a warning about AT&T’s future with TV.

According to KeyBanc Capital Markets, AT&T has “broad exposure to secularly challenged businesses,” analyst Brandon Nispel says, also noting declining subs for AT&T TV NOW and DirecTV in October. “While video monetization remains healthy, subscriber metrics are not.”

That may seem like a lot of investor talk, but it seems that they are worried that AT&T will continue to lose subscribers. This comes as AT&T reported over 1 million subscribers between its DIRECTV NOW, AT&T TV NOW, and U-Verse TV services.

AT&T is putting a lot of effort into HBO MAX as the future of their TV service. KeyBanc Capital Markets seems less than confident in that plan saying that HBO MAX will be “nowhere near as popular” as Disney+ was when it launched.

These concerns led the analyst Craig Moffett to downgrade AT&T’s stock to sell.

The question now is can AT&T turn around their subscriber losses in 2020 as AT&T has been predicting. AT&T has high hopes for both HBO MAX and the new AT&T TV service. The question now is will AT&T be successful or will subscriber losses continue.

What do you think of AT&T’s current plans for its TV business? Leave us a comment and let us know.

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