With AT&T acquiring DirecTV last year for over $45 billion, many wondered what AT&T was going to do with its existing cable service platform, U-verse. AT&T said the acquisition would allow the company to expand its service offering, but that still left many questions marks. Recently, the company has bundled DirecTV with AT&T's cell phone service, essentially marking the end to U-verse as its primary option. Now, AT&T is putting an end to pushing U-Verse as it phases customers into DirecTV.
AT&T announced this week that is will be slowly bringing U-verse marketing efforts to an end and will transition to DirecTV as the suggested offer. The company has already halted production on set-top boxes for the service, and soon be offering incentives to existing customers to make the switch to the satellite platform. AT&T said that DirecTV has both cheaper hardware and programming costs. The company lost over 240,000 U-verse customers over the last quarter as well, so it makes financial sense for this decision to happen. In contrast, DirecTV saw an increase of 214,000 customers.
Additionally, AT&T announced a three-stage plan that will be executed over three years. The end result will be a hub-like system where all AT&T services will be brought together to allow video to be sent to any device on the network.
However, the company said that it will not be completely turning off U-verse. Brad Burns, an AT&T spokesperson, said that the company will still support the platform and its existing customers who elect to stay.
To realize the many benefits of our DirecTV acquisition, we are leading our video marketing approach with DirecTV. However, our first priority is to listen to our customers and meet their needs, and if we determine a customer will be better served with the U-verse product, we offer attractive and compelling options.
U-verse already has a limited market, with only a select number of cities having the service available. DirecTV provides the nationwide coverage that is synonymous with AT&T's wireless service. That, along with less expensive programming costs, cheaper hardware, a well-known name and better content selection, consumers will likely be more apt to choose DirecTV if given the option of both anyway.