DIRECTV NOW is Saving AT&T’s TV Business

You may have recently heard that AT&T has for the first time in a long time added subscribers in the fourth quarter of 2016; however, the truth is all of the subscriber growth AT&T’s TV business saw was from DIRECTV NOW. Even with U-Verse and the traditional satellite DIRECTV service AT&T would have lost subscribers if it was not for DIRECTV NOW.

From March 2015 to September 2016, AT&T lost 479,000 subscribers from its satellite and U-verse TV businesses, but in the last few months of 2016 DIRECTV NOW added 200,000 subscribers after it launched.

The question now is how long can AT&T keep this up since the $35 a month for 100-channel promotional offer—an offer that likely drove many to rush out and get the service—is now over.

AT&T still has some good deals for new DIRECTV NOW customers including a free Fire Stick if you prepay for DIRECTV NOW, which is a good deal for anyone who wants an Fire Stick or even DIRECTV NOW.

The growth of DIRECTV NOW has shown there is demand for online live TV services. The only question now is how will Hulu and YouTube’s entry into the market affect the current lineup of Sling TV, PlayStation Vue, and DIRECTV NOW.

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