AT&T is said to be pursuing a sale of DirecTV as the satellite TV service has lost ground against streaming services.
DirecTV is one of the major satellite TV services, competing with Dish Network. AT&T acquired the service in 2015, but has lost millions of subscribers since the acquisition. Even the pandemic, and an unprecedented demand for home entertainment, has not been enough to stem the tide. Instead, users have shown a decided preference for streaming services, such as Netflix, Hulu, CBS All Access, Peacock and others.
As a result, it appears AT&T has had enough, and is looking to sell the beleaguered service. According to The Wall Street Journal, AT&T and its advisors at Goldman Sachs, are in talks with private-equity groups.
It remains to be seen whether a deal will be reached. Whether AT&T keeps or sells DirecTV, however, perhaps it’s time to take a page from the streaming services. AT&T and DirecTV have long been accused of overcharging, baiting and switching, and otherwise taking advantage of customers. One of the reasons streaming services have been so successful is because they deliver what users want at a reasonable price. What’s more, streaming services don’t charge for bundled equipment, equipment rentals, mystery fees or any of the other things that often define service with a TV provider.
Who knows how successful DirecTV might be if it were more like streaming services.