Channel Surfing Man

AT&T Is Hoping DIRECTV NOW Will “Yield Higher Customer Lifetime Value”


Channel Surfing ManFor years now traditional pay-TV services have been looking for ways to fight cord cutting. Now AT&T seems to have found their solution with DIRECTV NOW according to analyst Scott Goldman.

“The company’s top strategy to mitigate cord-cutting is DIRECTV NOW,” wrote Jefferies analyst Scott Goldman, who presented his take after meeting with AT&T management.

“Management is focused on providing tailored offers to drive lower churn over time,” he wrote. “While DIRECTV NOW carries lower margins, management believes the platform could ultimately yield higher customer lifetime value when leveraging the value of collected consumer data and the potential for adding broadband and/or wireless to the mix.”

So far AT&T has seen rapid growth in their DIRECTV NOW service that will likely top 1,000,000 subscribers this month. The question now is can DIRECTV NOW keep these subscribers.

Only time will tell how successful AT&T is with their plan to counter the losses from cord cutting.

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  • Barbara R

    If they add a DVR, and it’s good, and keep their prices affordable, they may succeed. I think that what they offer most closely replicates the traditional cable “bundle.” When I compared the channel lineups, everything I’d need or be interested in was in the least expensive package. There was really nothing in the more expensive package that called out to me.

  • Stephen D Irvine

    I’m going to get on my soapbox for a second. I don’t like AT&T as a company. Now, after saying that, I subscribe to DirecTV NOW only because it has the channels I want to watch (except no locals in my area) and I got in early and got the low price lock. I had DirecTV Sat. since before DirecTV was DirecTV , about 25 years. You younger people will have to look up the history of DirecTV to know what I’m talking about. I quite sat. because of overpriced packages, required contracts, promises not kept and unbelievably poor customer “disservice”. . OK my point is, if there was another streaming service that had what I wanted at the price I’m paying, I would be gone in a heartbeat! AT&T has done a terrible job with DirecTV NOW. Poor streaming, didn’t have Roku support in beginning and still no DVR and they have no honor. They don’t make good on the promises they make about their products. So as soon as a better service comes along I will be part of their “chum”!

    • Robin Carmack

      I agree with you on Directv. I had the service when the dish had RCA written across it and it was so small. Lol My experience with DNow differs from yours though. The service has been exceptional and I have contacted support twice for questions concerning local channels. I used the chat after logging in and have had great service. I also have AT&T wireless so the $25 off helps. I won’t use a dvr a lot but am looking forward to checking it out. Oh, agree wholeheartedly on ATT as a company but I despise Charter even more. We just got fiber so I was thrilled to ditch Charter.

    • Robert Anthony Hartzell

      Still don’t have Android TV at this point. I hear you about affordability. I would have to pay another $30-40 just to get a similar package with Vue or Sling.

  • Jerome Coolidge

    I did get a letter and clicked on Roku but they have a dropdown box after u select your streaming devices and they have an edit saying they do not support Roku at this time. Also with out these DVR beta invites maybe they are doing volume testing to make sure their service can handle all its customers

    • David Hull

      I have the Roku streaming stick with DirecTV NOW and there are more and more individual channel feeds accepting the Roku…for example, initially i added the Velocity GO channel and couldnt activate the channel through DirecTV NOW, @ 2 weeks ago, i was able to activate it, as well as AMC, FOX, ABC, and HBO GO…they’re getting better…

  • Karl Childers

    In order to reduce churn they need to do what satellite and cable companies should have done a long time ago which is voluntarily reward customer loyalty. For years these companies lured customers into contracts with freebies and discounts and then afterward they’d only show interest in retaining your business if you called to cancel service. They knew that the hassle of changing services would keep certain customers content so there was no need to show any desire to retain those people unless they threatened to leave. With the ease of switching streaming services they can no longer afford to take customers for granted.

    To their credit DirectvNow has been actively working to attract and retain customers with the $35 Go Big promotion, $25/$15 discount for wireless customers, free HBO etc. so now the question will be will they do anything to retain those customers for the long haul.

  • Olden Maineiac

    If Sling TV ever gets Fox News I’ll say bye, bye to Directv Now

    • Paul Sanders

      Dude, just search for “live Fox News streams” in Youtube and you will find about fifteen of them.

    • As long as you are OK with much slower load times than you are used to with DIRECTV NOW, and you don’t care that the Sling DVR does not apply to ESPN, ABC and Disney networks, and you are ok with a single stream at a time, and you don’t care for local networks, then you just may like Sling.

      • JD Campbell

        Slower load times? Actually, I think Dtvn loads channels slowly & Sling is quicker. Also, Sling Blue has 3 streams & 2 locals for me, whereas Dtvn has 2 streams & 3 locals & Sling at least offers a DVR… it’s all in how you portray it. I like things on both.

      • DON

        Philo has no sports so they are not in the same space as sling.

  • Mike Thaler

    A million customers who obviously don’t need the full service a DVR service provides??!! Maybe they should just not bother w. DVR.

    • Respected Citizen

      I wouldn’t need Sling if DTVN had cloud recording.

  • David Hull

    I have DirecTV NOW, now…the channel lineup is pretty good for $35…the only issue i see is the actual stream…i have AT&T WiFi (unlimited), the Roku Streaming stick, and no issues with Netflix, Hulu, Amazon Prime, or any of the multiple installed channels, but DirecTV NOW throttles from digital to an analog clarity or the video stream will “black screen” to load…also, there is no DVR tool and no way to swap back and forth between programs…if you want to change channels, you have to either bring up the guide or manually channel up/down…in contrast, Sling TV with the same equipment has DVR, channel swap, NO stream lag, and a lower cost…i personally went with DirecTV NOW and cancelled Sling because i liked the channel lineup better with DirecTV NOW…specifically, DirecTV NOW carries Velocity (which i geek out about), and Sling does not…

  • billgannon

    If DTVN wants to keep my family, the buffering must come to an end. Also more app support would be nice as well.

  • K_Dot

    I’m waiting till the day somebody create a true “a la carte” for us to select channels we want to watch and pay for that particular set channels in a price package affordable.

  • Sunflower

    ‘ leveraging the value of collected consumer data’
    That doesn’t sound good to me.

  • Dave Warner

    Personally, I can’t wait until Comcast and Verizon start throttling DirecTV NOW after the Net Neutrality rules get struck down. Can’t wait to see AT&T’s reaction to that.

    • BloodLust

      AT&T will do the same, So I would guess they will strike up some sort of place nice rule when it comes to that or everyone will suffer.

  • Todd Craw

    This service is so much Fail. Still buffers, still has low res issues. The VOD catalog is poor with the latest episodes taking a long time to get there. I am dumping it as soon as YouTube TV supports a Roku app.