Things are not going very well for telecom giant AT&T in their attempt to dominate the world of streaming. In fact, that is putting it mildly. People have been canceling their subscriptions to various AT&T services in droves. This is due to the prices of the services being raised by the company to cover their losses. The company wanted to put together a juggernaut that would eventually be victorious in the streaming wars. The first thing they did was pay nearly $70 billion for DirecTV. As if that wasn’t enough, they then merged with Time Warner for over $100 billion. This left the company with a ton a debt that even the Trump tax cuts could not wipe out.
AT&T was hoping that DirecTV and Time Warner would help them to create a company that would be able to dive into the streaming wars and compete against the big boys like Disney, Amazon and Netflix. However, things have not gone as the company had hoped. Raising the monthly fees for their services has resulted in over four million people cutting the cord and saying goodbye to AT&T forever. The company’s stock took a dive after major losses were revealed in their quarterly earnings report.
As you might expect, the people who run AT&T tried to paint a happy face on the dismal fourth quarter of 2019 that the company endured. They made excuses and basically told their investors that they have nothing to worry about. However, nothing could be further from the truth. The reality is that AT&T hoped that spending billions of dollars would be the key to winning the streaming wars. All it has succeeded in doing is put them in debt and cause them to lose many loyal customers. There is a lot of work they need to do in order to compete with the other streaming giants.
HBO Max is going to be launched very soon. The content that this service will offer is going to be astonishing. The only problem is that it will cost $15 every month. It will be very interesting to see if there will be many people who will be willing to pay that high price every month for a streaming service. It will have the highest monthly fee of all the streaming services that are available right now. AT&T executives are crossing their fingers that HBO Max will generate a lot of revenue.