The traditional AT&T television business has begun to decline, as the company has lost nearly 5 million subscribers by satellite and wired television sets since late 2016.
But AT&T chief John Stankey sees a way to recreate traditional online cable TV packages. HBO Max from AT&T is launched in May 2020 for $ 14.99 per month, and AT&T has set an ambitious target of 50 million US customers within five years.
Such a common number would make HBO Max much larger than the DirecTV AT&T satellite division and U-verse wit TV service. But in the end, customer service can be similar to DirecTV, U-verse or cable TV.
Vox wrote in a report yesterday, “HBO Max wants to be a content bundle that includes movies and shows that WarnerMedia does not own, as well as the people you. The report summarizes an interview Stanke gave at Recode’s Media Code conference.
Stanke said that HBO Max would be a platform “at some point” that we allow others to enter content.
Reassemble and remodel
Stankey, an AT&T employee, 34 years old, who is chairman and chief operating officer, is the second person to hold the post of CEO of AT&T Randall Stephenson, and when Stephenson retires, he may be in a position to become CEO. He is also the CEO of WarnerMedia, the AT&T division which also includes HBO.
Stankey said the proliferation of online video services has caused the traditional cable bundle to “slice” across multiple platforms.
“We’re basically not ready to regroup,” Stunky said.
With AT&T, expect price increases
If AT&T completely remade the cable package and still got $ 14.99 a month for all of that, that would be a good thing. But this is unlikely, as AT&T has already developed a history of raising internet broadcast prices that are much higher than introductory prices.
DirecTV Now, the online AT&T option for the DirecTV satellite service, was initially introduced in 2016 as a $ 35 per month plan with more than 100 channels. But AT&T increased prices several times and reduced the number of channels by removing channels that are not part of Time Warner Inc.
Nicknamed “AT&T TV Now”, the service costs $ 65 per month for 45 channels including HBO. Packages with more than 100 channels cost at least $ 124 per month, while the “Ultimate” package costs $ 135 per month for 125 channels.
At $ 14.99 per month, HBO Max will be similar to the standard Netflix offer and feature that costs $ 12.99 and $ 15.99 respectively. The price of HBO Max will now be the same as the current price of HBO, although HBO Max will include all HBO content among other things. But as we saw in the example of DirecTV Now, it wouldn’t be surprising to see AT&T raising prices for HBO Max in the years following its launch.
AT&T Makes Fear of Net Neutrality
AT&T will become a major player in online video, leading to concerns over net neutrality, as AT&T can use its control over home and mobile broadband networks to move customers away from online services and towards AT&T. .
In yesterday’s interview with Recode, Stankey claimed that it would be absurd for anyone to worry about AT&T or other Internet service providers who act in anti-competitive ways via live broadcasting on the Internet.
Stankey likes consumers to direct their anger elsewhere. In terms of the terms and conditions associated with developing a new product and what it would do to overcome innovation Hai, there is nothing more than traffic dealing with the Internet. ”
But Stankey is wrong because AT&T has not shown “favoritism” in its handling of video services. In January 2017, the FCC violated the rules of Net Neutrality by allowing AT&T and Verizon to stream their video services (including AT & T’s DirecTV) to their mobile networks without relying on customer data limits Was accused.