AT&T TV, DirecTV Add Free Year of HBO

AT&T continues to fine-tune its video strategy as it seeks to transition the bulk of its pay TV subscriber base to its new internet-delivered premium service, AT&T TV.

AT&T TV and DirecTV subscribers will now have a year of free HBO service when they sign up. The will also receive three free months of Showtime, Starz, Epix and Cinemax.

The offers appear to be separate from AT&T’s #ConnectedTogether campaign, which is currently offering free premium channel content to DirecTV, U-Verse, AT&T TV and AT&T TV Now subscribers.

The telco is also looking to reposition its skinner virtual pay TV service, AT&T TV Now, lowering the price by $10 to $55 a month, but stripping it of its free HBO perk. (The premium channel is now available to new AT&T TV Now subscribers as a $10-a-month add-on.)

Also read: AT&T TV: Everything You Need to Know About the Streaming Version of AT&T’s Premium Pay TV Service

The moves come as the COVID-19 pandemic crisis dampens AT&T’s hopes for a turnaround in its pay TV business, which lost nearly 5 million users last year.

Last week, MoffettNathanson analyst Craig Moffett said that instead of an earlier projection, which called for AT&T’s pay TV base to shrink by 13.1% in 2020 to 16.9 million subscribers, he now believes it will now decline by 16.6% to 16.2 million customers.

Also read: AT&T, DirecTV Set to Be Hit Hard by COVID-19 Recession: Analyst

AT&T last week revealed that it’s no longer adding new customers to its legacy IPTV platform, U-verse. And it’s working to transition much of its DirecTV customer base to AT&T TV.

“That would have been a difficult transition under the best of circumstances. These aren’t the best of circumstances,” Moffett said. 

Daniel Frankel is the managing editor of Next TV, an internet publishing vertical focused on the business of video streaming. A Los Angeles-based writer and editor who has covered the media and technology industries for more than two decades, Daniel has worked on staff for publications including E! Online, Electronic Media, Mediaweek, Variety, paidContent and GigaOm. You can start living a healthier life with greater wealth and prosperity by following Daniel on Twitter today!