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Another Phone Company Flop: Disconnecting CenturyLink Stream After Less Than One Year

Phillip Dampier February 21, 2018 CenturyLink, Competition, Consumer News, Online Video 2 Comments

CenturyLink Stream, the phone company’s planned nationwide alternative to cable television, will shut down its streamed package of nearly 50 channels on March 31.

The phone company had contemplated using CenturyLink Stream to compliment its package of phone and broadband service to budget-conscious customers. But Multichannel News reports subscribers were notified this week CenturyLink was pulling the plug on the service and its companion $89.99 Android TV set-top box that interfaced between a customer’s broadband connection and their television.

“Thank you to all who have streamed with us and provided feedback,” the company noted on its website. As compensation, customers are getting free on-demand rentals of movies on the service until it shuts down.

CenturyLink Stream’s “Ultimate” package sold for $45 per month, with a $5 discount if a CenturyLink customer bundled the company’s broadband service. It included a 50-hour cloud DVR service and access in some markets to local stations and regional sports channels.

CenturyLink’s Prism TV continues.

The company has stayed silent on exactly why it is pulling the plug on the service, which had been beta testing over the past year. Independent telephone companies beyond AT&T and Verizon have struggled to deliver credible triple play packages of fast broadband, phone service, and a lineup of cable television programming. Frontier Communications has avoided expanding its FiOS TV package outside of service areas acquired from AT&T and Verizon. Windstream recently announced a deal with AT&T to resell its DirecTV and DirecTV Now video packages, which could spell trouble for Windstream’s Kinetic TV platform, which has only slowly expanded since being announced in 2015.

Analysts say it is increasingly difficult for smaller companies to profitably sell video programming because of generous volume discounts on wholesale rates offered to the country’s biggest satellite TV, cable, and telco TV providers. AT&T itself acquired DirecTV to get better video pricing for its U-verse TV customers. Smaller phone companies cannot afford similar acquisitions. Instead, some companies have partnered with third-party providers already in the video business.

The National Cable TV Cooperative, which offers group pricing to small and medium-sized independent cable companies and municipal providers, have already announced partnerships with sports-oriented fuboTV and PlayStation Vue, which both sell packages of cable TV programming streamed over the internet.

That is the likely direction CenturyLink will head in, if it continues its interest in selling a television package.

“[W]e are open to looking at other options,” Glen Post, CenturyLink’s CEO, said last August on the company’s Q2 earnings call, noted Multichannel News. “Matter of fact, we continually talk with some of these other providers, look at the best ways we can bring that service and also other ways in working with them to reduce our content cost…It does not have to be our product.”

Currently there are 2 comments on this Article:

  1. KevinS says:

    The service failed for the basic fact that CenturyLink fails to provide any form of broadband internet to bundle with the service and phone.

    Or..is the sad excuse of DSL in most of their markets supposed to pass as “bradband hi speed internet” for me to bundle this service with?

  2. L. Nova says:

    In the long run it is cheaper for CenturyLink to partner with streaming providers Netflix, Amazon, Sling TV & HULU and the hardware streaming box vendors than running their own service.

    I tend to believe that the smaller telecoms want out of the costly cable TV business and let someone else deal with it. That’s a smart move in my book. Not to mention it saves network resources. Selling stand alone broadband is the best way going forward.







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