AT&T Inc. (NYSE:T) Initiatives To Boost DirecTV Now growth

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AT&T Inc. (NYSE:T) has included local stations and released a new bunch of promotions for DirecTV Now in the last month, measures that indicate the Dallas telco considers it has steadied the live, streaming TV offering and is prepared to turn its focus toward growth.

The details

More recently AT&T reported that it has added local ABC associates in over 30 new markets. It also can now claim four additional NBC markets and included Juneau, Alaska, to its existing list of local Fox associates. The firm has had agreements with all 3 networks from the start, however many of their local associates were formerly left out. AT&T stated that it nowadays has live local coverage in closely 70% of U.S. households and intends to continue growing local accessibility.

In a remarkable, promotion-fueled beginning, DirecTV Now included over 200,000 subscribers during Q4 2016. Bloomberg posted that the count was 328,000 in January but since then the subscriber growth has fallen flat.

The drop of subscriber adds comes with the timeline of a preliminary promotion. DirecTV Now’s unique package of around 100 channels, typically $60 per month, was first offered for $35 per month. Those who purchased in at the introductory rate are expected to be grandfathered into that package for good. The promo finished in mid-January.

Complaints from customers poured in from the start, with consumers mentioning a laundry list of unusual technical glitches. A top tech executive stated that the fast growth had caught AT&T slightly flat-footed. Marketing measures would ramp up in the second half of this year.

Those promotions seem to be getting underway. The firm reported in mid-June that new DirecTV Now clients who purchase 2 months of the service up-front will get a free Roku Premiere. Clients can also get Amazon Fire TV Stick for free if they select to prepay a single month. AT&T initially provided an Apple TV with a 3-month prepay.

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