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CBS and AT&T Reach Carriage Agreement, CBS Sports Net and Smithsonian Channel Part of Deal

Phillip Dampier August 8, 2019 AT&T, Consumer News, DirecTV, DirecTV Now, Online Video Comments Off on CBS and AT&T Reach Carriage Agreement, CBS Sports Net and Smithsonian Channel Part of Deal

CBS and AT&T have agreed to end the blackout of 26 CBS owned and operated TV stations in 17 markets including New York, Los Angeles, Chicago, Philadelphia, Dallas, San Francisco, Boston, Atlanta, Tampa, Seattle, Detroit, Minneapolis, Miami, Denver, Sacramento, Pittsburgh and Baltimore. CBS local stations in these areas will return to AT&T U-verse, DirecTV, and DirecTV Now lineups sometime today.

The renewed retransmission consent contract covers carriage of these stations and CBS-owned CBS Sports Network and Smithsonian Channel for the next several years and could broaden carriage of the two CBS cable networks to additional AT&T platforms in the coming months.

Terms of the agreement were not disclosed, but analysts suggest AT&T is now paying several dollars a month per subscriber for each over the air station. AT&T had earlier claimed CBS was being unreasonable in requesting a substantial hike in rates to continue carrying stations that viewers can get over the air for free.

AT&T is still engaged in weeks-long disputes with several Nexstar and Sinclair-managed local station, resulting in ongoing station blackouts in markets around the country.

5G Hype: Current 5G Networks Are Fast, But Coverage Is Awful (And Phones Get Really Hot)

Verizon, AT&T, and T-Mobile’s 5G launches are blazing fast, when you can find a signal, but your phone will also get blazing hot while using it.

The Wall Street Journal embarked on testing current 5G launches in several American cities and found speeds on 5G nearing 1,800 Mbps in some places, but the millimeter-wave frequencies most carriers are using for mobile 5G don’t travel far and are subject to disappear just by walking down the street, around the corner, or indoors.

Some devices with 5G support are also suffering from heat issues, sometimes causing phones to heat up to over 105° and drop 5G service in favor of less battery-intense 4G LTE. Network engineers admit they bring coolers filled with ice to cool down overheating 5G phones.

Only Sprint’s mid-band 5G network in Chicago offered a much larger coverage area that still worked after walking indoors, and devices remained cool to the touch while using it. But Sprint’s 5G service sacrifices performance for coverage, often topping out at around 200-300 Mbps.

The Wall Street Journal found a reporter, a tent, and some new 5G devices and sent them out to test some of America’s new 5G services. (5:39)

DirecTV Now Becomes AT&T TV Now, With AT&T TV Coming Later This Summer

Phillip Dampier July 30, 2019 AT&T, Consumer News, DirecTV, DirecTV Now, Online Video 1 Comment

DirecTV Now customers will soon be introduced to AT&T TV Now as the streaming service rebrands with new apps and prepares for the launch of WarnerMedia’s HBO Max streaming service early next year.

The streaming service, originally branded as part of the DirecTV platform, has suffered major subscriber losses (168,000 in the last three months alone) after reducing the size of its TV packages and raising prices twice in the last year. To date, more than 26% of DirecTV Now’s subscriber base has defected to other streaming services, with no end to those losses in sight. AT&T’s DirecTV satellite and U-verse TV have also turned in stunning reductions in the number of subscribers, losing at least two million customers in the last year, with 778,000 departing during the second quarter of 2019.

AT&T has stopped offering deep promotional discounts to most customers threatening to cancel over rate hikes, and subscribers are making good on their threats to leave. The company is also embroiled in two major retransmission consent disputes that have left customers in several cities facing a blackout of as many as three network affiliated local TV stations. With higher prices for fewer channels, and plenty of alternatives, customers are turning to other providers.

AT&T’s 2015 purchase of DirecTV, in retrospect, appears to have been a major business mistake, according to some Wall Street analysts. Originally intended to help AT&T manage the spiraling costs of video for its U-verse TV service by winning more generous volume discounts from programmers, the DirecTV acquisition came just before the phenomenon of cord-cutting took off, leaving all of AT&T’s video services vulnerable to customer losses. DirecTV Now initially benefited from cord-cutters attracted to its generous package of channels at a low price, but an executive decision to reduce the channel lineup while raising prices drove off what executives characterized as ‘undesirable customers only looking for deals.’

AT&T has also been experimenting with a separate streaming service that will likely eventually replace the satellite-based DirecTV. Beta testers have been providing feedback to AT&T about a new set top streaming box intended to work with this service, now to be called AT&T TV. AT&T is also reducing the number of apps required to access its myriad of video services. AT&T TV and AT&T TV Now customers will download the same app, only the channel lineups will be different. The company is targeting AT&T TV Now on cord-cutters looking for a cheaper and smaller video package, while AT&T TV will include a range of packages likely identical or very similar to DirecTV’s current satellite lineup.

If AT&T TV is successful, AT&T can cut costs incurred installing and maintaining satellite dishes and also eventually decommission DirecTV’s satellite fleet. Rural satellite TV customers without access to broadband may be in a difficult position if that happens, and the country has still not resolved the rural broadband challenge.

Even with these changes, AT&T customers are faced with a large menu of potentially confusing video options. AT&T sells traditional live cable TV services through AT&T TV, AT&T TV Now, DirecTV, and U-verse. It also offers a stripped down WatchTV package offering 35 channels for $15 a month or less. Premium customers still trying to tell the difference between HBO Go and HBO Now will soon also contend with HBO Max. Cinemax has its own similar offerings for cable TV customers and direct to consumer subscribers.

AT&T Exploring Exiting Puerto Rico With Sale of Its Internet, TV, Landline Services

Phillip Dampier July 22, 2019 AT&T, Consumer News 1 Comment

Reuters reports AT&T is exploring the possibility of leaving Puerto Rico, with a possible sale of its assets for around $3 billion.

AT&T is under pressure to reduce its large debt load after acquiring Time Warner (Entertainment) in 2018 for $85 billion, which left the telco with a total debt of $164 billion. CEO Randall Stephenson told shareholders he has made cutting debt at the company a major priority, resulting in job cuts, a sale of AT&T’s stake in Hulu for $1.43 billion, and letting go of WarnerMedia’s Hudson Yards offices in Manhattan for almost $2.2 billion.

AT&T has also indicated it is winding down its fiber broadband expansion program and is expecting to layoff additional workers as projects are finished around the country.

A complete exit from Puerto Rico would require a sale of AT&T’s wireless network, largely acquired after completing a buyout of Centennial Communications in 2009. AT&T has been earning about $300 million a year from its internet, TV, landline, and business service business on the island.

The company has hired a financial adviser to explore such a sale, but a source indicated AT&T may cancel its exit plans if it does not attract adequate bids. Potential acquirers include media companies and private equity firms. Buyers will face running the business in a compromised economy still recovering from 2017’s Hurricane Maria.

Comcast Premium Customers Lose Cinemax in Favor of Comcast-Owned Hitz

Comcast premium subscribers began seeing Cinemax dropped from their lineup this morning, replaced with Comcast’s own premium movie network Hitz.

The cable company announced back in May it was replacing AT&T/WarnerMedia-owned Cinemax with its own movie channel beginning this summer. Summer has arrived.

Hitz will save Comcast an undisclosed amount of money over what AT&T was charging the cable operator for the lesser-watched cousin of HBO. Cinemax was launched in 1980 to focus on movies, and so will Hitz. Comcast says its new movie channel will feature at least 200 major movie titles, all available on-demand, with fewer HBO also-rans. Linear TV viewers will see at least three versions of Hitz on their lineup, replacing five Cinemax networks. They are dubbed Hitz, Hitz2 and Hitz3. The new movie channel is included in XFINITY Premier, Super and certain other TV packages.

Cinemax fans who want the channel back will still be able to subscribe, but only on an a-la-carte basis for $12/month.

Comcast offers this FAQ:

What is Hitz?
Hitz is a new on-demand movie service that includes more than 200 titles from a variety of top studios. This selection will rotate over time.

Where can I find Hitz?
The easiest way to find Hitz is by saying “Hitz” into your X1 Voice Remote. Hitz can also be found in the Networks section of the On Demand menu. You can also see current Hitz movies in the On-Screen Guide – frequently near other movie services.

Why are you doing this?
Most of the movies on Cinemax also air on HBO. By offering Hitz instead, we’re delivering customers a better variety of content.

How can I watch Cinemax original content?
While Cinemax is no longer included in the adjusted packages, it is still available to purchase on its own for $12 per month.

Should I pay a different price now that I am no longer receiving Cinemax?
While Cinemax is no longer included in these packages, we believe the new lineup offers a better value. Most of the movies on Cinemax have also aired on HBO. By offering Hitz instead, we’re delivering a better variety of content.

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