That is a far cry from the average DirecTV satellite bill. According to The Wall Street Journal the average DirecTV satellite customer pays $118 a month or $1,416 a year. Compare that to just $35 a month or $420 a year.
Throw in a few fees and AT&T will make about a $1,000 less in revenue from every DirecTV Now customer. That could explain the rumors that AT&T will not market the new streaming service to their current customers.
According to The Wall Street Journal not only will revenue be smaller but the profit margins of a typical DirecTV satellite customer is about $42 a month. That means even if all of the $35 a month DirecTV Now bill was profit they would still lose $7 a month.
We do know that there will be multiple packages starting at $35 a month. We have also heard rumors that AT&T will be pushing add-ons and other services to help drive revenue for the new streaming service, but we still do not know what these packages, add-ons, and other incentives are.
AT&T clearly sees the future of TV is not with their current satellite service. Although they may be willing to take a smaller profit margin they are likely hoping to make that up with additional cellular subscribers or through other means.
Hopefully AT&T will release more details of their new streaming service soon.
Please follow us on Facebook and Twitter for more news, tips, and reviews.
Need cord cutting tech support? Join our new Cord Cutting Tech Support Facebook Group for help.