June 9, 2024FilmTakeComments Off on Streaming Services Face Subscriber Exodus Amid Rising Costs and Market Saturation
In recent years, the ambitious hopes studios placed into streaming services in the United States are starting to backfire. As a result, the streaming landscape in the United States is undergoing a period of retraction, just as the theatrical and pay television market is collapsing.
September 27, 2021FilmTakeComments Off on AT&T Loses Over $50 Billion on Half-Baked Content Distribution Ambitions
After losing over $50 billion on a series of failed forays into content production and distribution, AT&T was forced to start selling stakes in its recently acquired media assets or risk weakening its monopolistic grip on telecom and internet delivery.
September 5, 2021FilmTakeComments Off on AT&T’s Great Media Escape Takes Shape After DirecTV and WarnerMedia Selloffs
AT&T’s decision to acquire a declining DirecTV in 2015 and a bloated WarnerMedia in 2018 were massive miscalculations. Desperate to pay down its debt, in March 2021, AT&T announced it would sell a 30% stake in DirecTV.
AT&T is desperate to sell some or all of DirecTV to pay down its $180 billion mountain of debt. According to inside sources, the satellite service is being offered at a $20 billion valuation, marking a $29 billion loss since 2015.
AT&T released its answer to subscriber losses with an all-new set-top service called AT&T TV, not to be confused with a plethora of other options. The basic package includes 100 channels.
In the fourth quarter, two million US subscribers cut the cord on traditional television packages from AT&T, Comcast, Charter, and Verizon, up from 1.7 million in the third quarter.
AT&T’s WarnerMedia released details about its forthcoming streaming service HBO Max, which will officially launch in May 2020. The service will cost $14.99 a month, the same cost as HBO’s flagship service.
Lionsgate is said to be in talks to split its film and television production business from its recently acquired premium-channel Starz into separate companies.
During the second quarter, DirecTV’s traditional satellite service lost 778,000 subscribers and its streaming service DirecTV Now lost 168,000 accounts.
There is even more bad news for pay television providers. Unlike 2017, subscribers signing up for cheaper online television bundles are starting to contract.
Beyond maintaining AT&T’s core telecom business, the company is beset with declining DirecTV subscribers and a host of problems at Time Warner and Warner Bros.
The DirecTV deal was AT&T’s first big gamble on the filmed entertainment distribution market. DirecTV has been shedding subscribers since the beginning of 2017.
After decades of stifling innovation and blocking new content delivery models, cable companies are paying a hefty price that shows no sign of stopping.
Only days apart, the UK’s largest satellite broadcaster, Sky, and the US’s biggest cable company, Comcast, announced plans to expand their services online.
When AT&T acquired DirecTV for $48.5 billion, they had big plans for mobile streaming. The FCC thinks DirecTV Now service “may obstruct competition and…”