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.
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.read more...