Thread regarding AT&T layoffs

Randy needs customers for his new untested service

IBD's TAKE: AT&T stock has dropped nearly 7% since reports of the Time Warner deal surfaced and subsequently announced. Time Warner stock is trading at near 87, roughly 20 below AT&T's cash and stock offer of 107.50 per share. Analysts say TWX shareholders may be unsure of regulatory approval. Analysts do not expect another bidder such as Walt Disney or Apple to swoop in for TWX. Media stocks have cooled off since Friday. Learn more about CBS and other media stocks at IBD Stock Checkup.

Stephenson, while announcing AT&T's proposed $85.4 billion acquisition of Time Warner (TWX) on Monday, disclosed that DirecTV Now would be launched in November. Time Warner owns a 10% stake in Hulu.

AT&T acquired satellite TV broadcaster DirecTV Group in 2015.

"We estimate monthly programming costs for DirecTV Now in the low $30 range, similar to the price AT&T will charge, meaning the company will not make much on this service," UBS analyst John Hodulik said in a research report. "However, it will avoid costs for satellites, set-top boxes and installations/trouble-shooting, while also reaching customers who have left the pay TV market or never joined.

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| 1261 views | | 14 replies (last November 1, 2016) | Reply
Post ID: @OP+K3U4fiI

14 replies (most recent on top)

Lol, epic fail -wks!

Nice try though.

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Post ID: @6xtt+K3U4fiI

@ 1pgy

Here's the awful reality about the purchase of TW, yes it has HBO which is no doubt a BIG reason why Randall wants it but did you know that Netflix's CEO is fully for it? Not because it gives a sh-- about what's in it for at&t, at this point the telecoms are so far behind the game they are no longer a threat to Netflix or any other emerging streaming service, its because outside of Game of Thrones HBO isn't really pumping out anymore big hit series and its by design the talent behind HBO's shows most likely don't have agreements that require them to stick around if TW gets sold and that's why Netflix is so giddy they have already extended an invitation to everyone at HBO. Don't expect the real talent to stick around working for clueless Randall when Netflix is a no brainer.

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Post ID: @1sxo+K3U4fiI

I've seen DirecTV Now in action. It is a pretty ambitious product. The actual content available is impressive. However, this late November launch will be an embarrassment. The UI and the experience of using the app is years behind something like Netflix or even HBOgo.

The app is really unstable. The device and browser support is poor, a bunch of on demand content just decides to vanish from view. Local channel availability is really hit or miss depending on your market. The interface is very touchy. It is very easy to accidentally change the channel or inadvertently flip the guide hours ahead.

I don't know much about pricing beyond what everyone else knows; but If this turns out to be a success, it will be at the expense of AT because a decade of Randy wildly plucking shiny things out of thin air has painted us into a corner.

It should be noted that Netflix has 85 million customers, they have top shelf talent developing great technology and experienced media executives. They only clear 300 million a year in profit. How the hell are we going to clear enough profit to pay for 100+ BILLION of debt (between TWX debt and the merger costs) from the Time Warner transaction. Who is running the numbers here?

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Post ID: @1pgy+K3U4fiI

So many internet experts that just "know" exactly what is and what isn't. Please...

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Post ID: @kwk+K3U4fiI

No it won't be $35

http://www.dslreports.com/shownews/No-ATTs-New-Streaming-Service-Probably-Wont-be-35-138202

There's a few problems with AT&T's implication. One, AT&T announced its DirecTV Now service eight months ago, and the service will launch long before this deal gets regulatory approval (if it does). The fact that AT&T's able to launch the service at the $35 price point without owning Time Warner yet suggests the deal wasn't necessary to hit that price point.

There's also the fact that if you know AT&T at all (I've been writing about them now for sixteen years straight), you can be fairly certain that $35 price point comes with a few caveats, and likely won't be anywhere near $35 once you actually get your bill.

Pricing a nationwide streaming service at $35 would quickly drive tens of millions of AT&T U-Verse TV and DirecTV customers (who pay $100 or more every month) to the cheaper alternative, costing AT&T billions in lost revenue. AT&T simply isn't the kind of company to throw that amount of money in the toilet on an uncertain pivot attempt.

As such, you can be sure that DirecTV Now comes with the now-industry-standard bevy of hidden fees, used to covertly jack up the advertised price post sale. You can also be certain that to get that price point you'll need to sign up for AT&T wireless or other services. And there will likely be other caveats and restrictions included to ensure AT&T doesn't suddenly face a mass exodus of users fleeing its existing, quite lucrative legacy TV services.

What those caveats will be aren't yet revealed, but speaking at a conference back in May, AT&T executives made it abundantly clear the new streaming service would be designed in such a way as to "funnel" (read: upsell) customers to more expensive, traditional TV options.

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Post ID: @wks+K3U4fiI

Don't be a fool wrap your tool. When you deal with a h--ker and keep you wallet close

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Post ID: @qyf+K3U4fiI

Beware of Time Warner's legs spread apart like a h00ker. They have some sort of STD coming your way.

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Post ID: @ukq+K3U4fiI

A disruptive idea doesn't exactly have to be new to be considered innovative. Sometimes it's a combination of timing and market readiness.

Let's face it: it's not like Sling or PSVue are wowing people right now.

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Post ID: @rtx+K3U4fiI

Yes, JD Powers, every time the news takes a negative bend w/ T...there's some magical fairy dust award bestowed. JD Powers has always been interesting to me, because its one you actually PAY for in licensing and branding fees. If you aren't "bought in" you don't get the award.

Hocus Pocus.

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Post ID: @llk+K3U4fiI

JD powers award?! My word surely we'll gain new customers now when they see the advertisement of this award printed is customers who still subscribe to harper's BAZZAR. All 3 of them.

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Post ID: @tay+K3U4fiI

Yes it's so disruptive because it's such a new innovative idea no one has ever tought of before. You know it's not the u verse name that caused people to curse out loud it's what come before it. A.T.&.T

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Post ID: @svm+K3U4fiI

There's a JD powers award coming soon to a circus ( I mean news now) near you.

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Post ID: @icq+K3U4fiI

DIRECTV Now will win over investors. It truly is a disrupting product and you know people will love it, especially since it has the word DIRECTV in it.

Now, if it was called U-verse now, consumers would be puking everywhere.

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Post ID: @nyp+K3U4fiI

This company was never meant for consumers, i can remember the contracts fine print, bait and switch offers, and deceptive sales practices since I can remember, I seriously cast doubt in the overall program success,

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Post ID: @vxi+K3U4fiI

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