6M people bundling DirecTV video with AT&T wireless
The new wireless bundle for consumers includes content. At this week’s MoffettNathanson Media and Communications Summit, AT&T CFO John Stephens said that AT&T has seen success with promotional bundles of linear DirecTV and virtual DirecTV Now services, along with HBO, and unlimited wireless. He added that 6 million AT&T customers have bundled wireless and video services. “What we’ve seen so far is a really great response from our customers,” Stephens said, according to a Seeking Alpha transcript.
With AT&T’s pending $85.4 billion acquisition of Time Warner, parent company of HBO, this trend to bundle content takes on more significance. Stephens discussed how this bundling has reduced the churn for wireless customers.
“In many cases, it’s more attractive to put HBO on your phone than it is to give you a free phone,” he said. “Many of our customers value the HBO more than they value a free piece of equipment.”
Stephens went on to suggest that the move to acquire Time Warner was about scale. Having millions of users to collect data from can be used by Warner Studios to create optimized content that can then be targeted at the right users based on factors viewing habits, personal tastes as well as which device they’re using. Just as importantly, it can be used to target lucrative ads based on those same factors.