It may not be today or tomorrow, but it could be soon, according to Jefferson Graham at USAToday. DirecTV-owner AT&T this week admitted that it is no longer actively marketing the service, which has seen subscribers fall to 16 million from 20 million when the company purchased it for $49 billion in 2015.
AT&T will continue selling DirecTV in "more rural or less dense suburban areas," John Shankey, the president of AT&T said at an investor conference. "But in terms of our marketing muscle and our momentum in the market, it will be about software-driven pay-TV packages."
The pitch: By installing a small satellite dish on the roof or outside the home, customers could get more channels and a clearer signal, with a heavy emphasis on sports. Most notably, "NFL Sunday Ticket," offering "every live game" across the country in one place. The downside: two-year contracts and equipment rental.
The ease of streaming alternatives, of smart TVs that connect to the Internet to bring in apps like Netflix, Hulu and Amazon Prime, or cheap streaming players like the Roku and Amazon Fire TV Stick, which sell for around $25, make the need for equipment rental a thing of the past.
Many believe that when the NFL deal expires in two years, AT&T will either sell DirecTV or shut it down. One ready buyer has already expressed interest, the Dish Network. Owner Charlie Ergen said a merger was "inevitable" on a recent earnings call.
Dish lost 100,000 subscribers in the most recent quarter, compared to 1.1 million from DirecTV. Dish currently has 9 million subscribers, plus 2.5 million to the streaming cable alternative service Sling TV. AT&T also has a streaming service, AT&T Now (formerly known as DirecTV Now), which has just under 1 million subscribers.
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