[opendtv] Re: AT&T: TV Revenue 'Re-shifting' to Mobile Video | Multichannel
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Thu, 13 Aug 2015 10:30:01 -0400
On Aug 12, 2015, at 8:59 PM, Manfredi, Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:
Actually, I like it fine, Craig.
Of course you do. You always take the bait.
This is AT&T attempting to make their growth of an old-school formula appear
more up to date, by re-stating what everyone else has also done. TVE exists,
so does mobility support. Nothing new there. Saying it's new doesn't make it
so.
But packaging it the way they have just announced is new. It may not work, but
that's their plan and they are sticking to it...for now.
"We're actually convinced as linear TV subscription and ARPU might get
pressured over time, the pricing is such that the mobility piece of revenue
and the fixed broadband piece of revenue move up. There's going to be a
re-shifting of revenue and our expectation is that we can probably grow
revenue per household for the foreseeable future."
Remember the post about the advantages of bundling multiple services Bert. The
oligopolies have many levers they can use to make bundles attractive.
I don't know if you read this part previously, Craig. What's growing is not
the number of people wanting linear streams. That's in decline.
It is far from clear that that is true. But yes, cord cutting and shaving are
real. Funny that you ignored this part of the article:
AT&T chairman and CEO Randall Stephenson told analysts that the phone company
saw the shift even before it started to pursue DirecTV last year. He added
that while cord-cutting and cord-shaving continues to cut into the pay TV
subscriber base, the answer could be in offering customers more flexibility
in where and when they watch programs.
“TV everywhere is what’s being consumed by a lot of millennials and our
research is bearing this out,” Stephenson said, adding that even as linear TV
customers decline as household growth rises, it is a “manageable decline.”
Sounds like TVE is rather central to AT&Ts plans.
What's growing is basically everything else, including demand for broadband
and any form of TV over the Internet (on demand, mobile, OTT sites, what have
you).
I would characterize this as a shift in viewing behavior. AT&T obviously
believes that there will be both in ear and VOD, with a shift from the TV in
the family room to mobile devices.
Regards
Craig
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