AT&T's new internet-based TV service won't slow consumer cord-cutting - Business Insider

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While AT&T TV represents a step in the right direction, it does not adequately address the factors leading customers to drop traditional TV services

AT&T TV instead streams via home internet — this reduces AT&T's reliance on both the overarching satellite infrastructure and the associated

of servicing and installing home TV dishes. The lower servicing load for internet-based TV will reduce the cost of toggling service on and off, so AT&T could experiment with trial offers or shorter-term contracts. high-speed internet access will generate higher returns, expanding the target market of consumers for both home internet and AT&T TV service.

While AT&T TV represents a step in the right direction, it does not adequately address the factors leading customers to drop traditional TV services. AT&T 3.4 million traditional video subscribers in 2019, representing a 19% decrease year-over-year . This reflects a broader decline in network operators' role as conduits for media services. Media companies are increasingly going direct to consumers through internet services — Netflix, Amazon Prime Video, Apple TV+, and others are often

 

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