Subscription Video on Demand (SVOD) service DirecTV Now has added 342,000 subscribers in the second quarter of 2018, increased from 152,000 subs added in the previous-year period. The streaming platform currently has more than 1.8 million subscribers as compared to less than 500,000 last year.
Lower acquisition costs, operational costs, including deployment and a decline in pay-TV usage are few factors behind the rise in subscriber base of the AT&T’s entertainment group.
John Donovan, CEO of AT&T Communications quoted,“The customers we lost, the cord-nevers, the cord-cutters, we’ve replaced with products that are in their affordability range. Over time, as we build those [OTT video sub] volumes, those are products that will get scalable margins.”