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Jeff Baumgartner
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Jeff Baumgartner,
User Rank: Light Sabre
1/31/2019 | 2:03:34 PM
Re: AT&T's video base gushes red, broadband a disappointment
Maybe it would've made a minor difference, but I doubt it would've made anywhere in the neighborhood of a material difference  on the #s, though it would have certainly put a smile on the faces of those who hate caps and any form of usage-based broadband pricing. I don't think removing a cap would've moved the needle much for ATT. 

The decline in ATT's video sub that quarter had *everything* to do with people rolling off of the promotions and deep discounts that ATT used to tart up the numbers and get people in the door. It did well with the latter... but could not keep people there for long with  respect to the OTT product. 

Churn is going to be a *big* problem for all the OTT-TV players. They are playing to the consumer desire for a no contract, come and go as you please service, but if they can't retain them all they are doing is chasing their tails and having little to no subscriber stability in the product. Customers in that group are happy to just surf from one OTT provider to the other as discounts and free trials come to an end. It's hard to build a sustainable business when you are laser focused on what is the most fickle cut of the market. 

Can see now why companies like Comcast and Charter are giving hardly any attention to that market (let those guys fight over that bone) and instead focusing efforts on more profitible customers even as their pay-TV base slowly erodes.  JB 

 
davidgrantaustin
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davidgrantaustin,
User Rank: Light Beer
1/31/2019 | 12:08:56 PM
Re: AT&T's video base gushes red, broadband a disappointment
Maybe if AT&T got rid of the data caps for FTTP, they might see realize more growth. Obviously the bundling of AT&T DTV / DTVNow service with AT&T mobile plans via their new incentives program did not pan out the way they had hoped. 
Jeff Baumgartner
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Jeff Baumgartner,
User Rank: Light Sabre
1/30/2019 | 1:05:08 PM
AT&T's video base gushes red, broadband a disappointment
In a note about today's Q4 results, MoffettNathanson analyst Craig Moffett acknowledged that AT&T had guided to video sub losses in the period. "But nobody expected this," he said, adding later that the story for ATT's Entertainment Group has become a "push-pull" between increasing sub losses and higher prices.

For broadband, he said the results were "surprisingly weak," with the 6K IP broadband net adds a shock given the expansion in the FTTP footprint was far below consensus of 82K, and far below the gain of 95K subs a year ago. Ironically, the lower than expected 38K DSL sub losses somewhat softened the blow, he wrote.


"It must be judged a disappointment that AT&T is still losing net broadband subscribers (-32K) given the expansion in their fiber-to-the-home buildout of the past few years," Moffett added. JB 


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