Is DIRECTV going away?
DIRECTV can be described as one of the most prominent satellite TV providers which is offering its services to millions of clients from across the United States of America. However, pay TV has been changing in the last few years as the avenues have opened up for streaming services like Netflix or Hulu. This has led some to ponder if DIRECTV has a future in the business or is already on the verge of extinction. However, is DIRECTV really on its way out now or shortly?
The Short Answer
The short answer is: No, it seems that DIRECTV is not disappearing anytime soon or closing its doors to operations at least shortly. However, the recent shift towards cord-cutting and competition from streaming services does not significantly affect the company’s market share and channel offerings, sports packages, and partnerships to support the business. While the overall user numbers dropped in the last few years, they also stabilized significantly. However, this idea is not very clear as to the future of technology and the need for having DIRECTV as a source of entertainment for its subscribers.
The Long Answer
Here are several reasons why DIRECTV will likely remain a major player: Here are several reasons why DIRECTV will likely remain a major player:
1. Large Subscriber Base
Although the company has recently experienced some decline in the number of its customers in light of cord-cutting, the company still serves about fifteen million clients across the country. This substantial number of customers has remained a source of steady income and cash flow necessary for the organization’s operations.
2. Extensive Channel Lineup
DIRECTV is proud to provide viewers with multiple choices of channels numbering over a hundred, ranging from entertainment, news, sports, etc. It is for this reason that many of its subscribers have subscribed to DIRECTV for the particular channel packages that cannot be easily accessed through the streaming options. This is still true up to this date, therefore it is a competitive advantage.
3. NFL Sunday Ticket
The Sunday ticket football package, which enables the fans to see every NFL game that is blacked out in their local area on Sundays, remains popular and generates significant subscriptions. As long as DIRECTV still has this exclusive package, it will always be assured of a good market audience.
4. Bundled Services
DIRECTV also offers services in combination with TV/internet/phone through affiliations with other companies such as AT&T. That way, customers cannot easily cancel their subscriptions and jump to another provider, thus increasing retention. Most of the bundles also bind customers into longer service periods of usage of the service.
5. Technical Capabilities
Unlike many streaming providers, DIRECTV offers advanced capabilities like a) the opportunity to view different channels on several TVs in the house; b) an enhanced flexible programming and digital video recorder; c) high definition picture quality with 4K format on selected programs; d) surety in storms and other natural calamities in which internet streams may stop. In particular, for some customers, the following technical benefits of streaming remain important reasons to use the service.
6. Potential for Acquisition
If somehow DIRECTV revenues were ever to trail off significantly, their large market share and extensive network would render them susceptible to being acquired. DIRECTV can be acquired and integrated into the company, that currently offers its cable services to consumers, such as Comcast, Dish Network, or others. This gives us another chance to continue the existence of DIRECTV in some form, a form we have not seen yet.
Uncertain Future
Nevertheless, it cannot be criticized that DIRECTV has a great many advantages and even though its future seems rather vague, the company has to respond to the competitive threats that stem from the new generation of streaming services. Cord cutting is only increasing with time and this cuts across all classes of society. The test they will face will be how to continue offering streaming flexibility while at the same time capitalizing on the satellite TV potential. This may include options like This may include options like:
• Providing streaming/ on-demand option for an additional satellite
• It is a strategy that is centered on technical competencies, particularly the technical prowess for hi-tech products.
• Offering DIRECTV with Fiber Optic or 5G internet services
• Offering so-called skinny bundles at significantly lower price levels
While one player may continue to control a large market share like having more than 20 million customers as was the case with DIRECTV, it is difficult to see this happening in the future. Nevertheless, by focusing on innovation and building on strengths such as sporting event coverage, DIRECTV is well-equipped to extract revenue from a solid base of loyal clients in the future. Thus, they will need to constantly adapt, but it does not look like the industry as a whole will see any of the players completely vanish shortly. Altogether, despite the emergence of streaming, DIRECTV still performs a function that has not yet been fully copied by streaming.
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