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.)
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.
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.
Weekly digest of streaming and OTT industry news
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.