DirecTV Now was introduced recently on November 30, 2016, as a subscription streaming television by the multinational telecommunications organization, AT&T Inc. The service offers a large range of 100 channels for prices that start at a basic level of $35. The digital service works online only, and it runs perfectly with different kinds of devices, especially smartphones. Another perk that comes with DirecTV Now is that customers will consume zero mobile data if they are watching from an AT&T network. Despite all these, the company seemed to be literally overwhelmed by the users’ demands.
To make things worse, the competition of DirecTV Now is far from playing nicely. On Wednesday, John Legere, the CEO of T-Mobile, made a curious proposition to all consumers alike. He offered one free year of online television services for anyone who turns down AT&T TV package and moves to Hulu subscription instead. Legere adopted an offensive business strategy as it was only recently when he compared Verizon company to a person who suffers from a midlife crisis.
Amid a critical time for getting initiated in the television industry, AT&T managed to gather a community of 200,000 users since the launching date of DirecTV Now last year. This number exceeded the expectations of Wall Street thanks to its appealing package of $35 a month for 100 channels. Randal Stephenson, the CEO of AT&T, described this project as a new experience and acknowledged the fact that they didn’t release the full potential of their television services yet.
Despite all these, AT&T is still a novice when it comes to this sector. It was only a year ago when the company acquired DirecTV, and the organization has still a lot of aspects to improve. Moreover, the telecommunications organization is in full negotiation to make one of the boldest moves in its history, namely purchasing Time Warner. If this transaction takes place, AT&T will be behind world renowned productions such as Superman and Game of Thrones.
AT&T has just made public its fourth quarter earnings. The total profit for this period was of $2.4 billion which means 39 cents a share. This is a large setback from the previous year when the shares were valued at 65 cents a unit. Yahoo Finance showed how analysts had greater expectations for the fourth quarter.
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