aIn 2019, AT&T lost 3.43 million premium TV subscribers and the trend repeats this time, too but at an increased rate. The latest AT&T report records that the service lost almost 900,000 premium TV subscribers in Q1 2020 alone. As people are at their homes, the online media consumption has gone up by a huge number but that’s not reflected in AT&T. Hidden charges, subscription price hike, etc are believed to be the reason why a lot of people switch the service.
As per the Arstechnica report, the new AT&T online TV show came with hidden fees and almost double the subscription charges from the second year. AT&T pricing is way above their competition in this matter. AT&T TV Now Plus costs $55 per month, the Max plan costs $80. Earlier, the price of the Plus plan also rose to $65 month which is way above the industry average.
U-verse IPTV also saw a loss in customer base due to service interruptions and bad reliability. Following these, the customers were forced to move and the same happened this time. Similarly, the company also losses about 73,000 DSL clients as well. These numbers also came from the same report published by AT&T.
After losing 900,000 subscribers the service now has around 18.6 million subscribers. For this, AT&T said, “due to competition and customers rolling off promotional discounts as well as lower gross adds from the continued focus on adding higher-value customers.”
AT&T focused on increasing the average revenue from a customer instead of reducing the plan prices and attracting more customers to its platform. AT&T also lost 138,000 subscribers in AT&T TV Now subscription which is different from the Premium TV category.
HBO Max is all set to launch on the 27th of May this year. And the pricing is said to be somewhere around $15 per month. And for sure, it will bring more competition.