August 23, 2021
Satellite TV operator DirecTV beginning Aug. 26 will officially switch its brand name to DirecTV Stream. The distributor, which AT&T sold a controlling minority stake of to private equity group TPG Capital earlier this year, is looking to capitalize on the streaming video phenomena birthed by Netflix, Amazon Prime Video and Hulu, and now driven as well by Disney+, HBO Max, Paramount+ and online TV.
“AT&T satellite, streaming or IP video customers will automatically keep their video service, any bundled wireless, Internet or HBO Max services, and associated discounts with no action needed,” Bill Morrow, CEO of DirecTV, said in a statement.
The newly branded DirecTV Stream will become the single brand for video streaming services previously launched by AT&T, with the exception of HBO Max.
Regardless of the name change, media chatter about a merger between satellite operators Dish Network and DirecTV continues to gain steam. Dish Chairman Charlie Ergen contends that with AT&T unloading DirecTV to a private party, regulatory concerns about the two companies combining operations would appear to lessen.
“In terms of DirecTV and Dish, I mean obviously, I’ve said it the last year, I think that those two companies go together, that’s inevitable,” Ergen said on the most-recent fiscal call. “From a regulatory point of view, it is less objection to it because [of the] hundreds of billions of dollars of broadband deployment and continued competition from the programmers themselves in the marketplace.”
Both Dish and DirecTV have been hemorrhaging pay-TV subscribers for years as consumers migrate to over-the-top video alternatives. Dish saw its net sub base (including online platform Sling TV) dip below 10 million for the first time in the most recent quarter. AT&T pay-TV subs dropped 13% to 15.7 million.
“We’ll just have to wait and see whether there is a desire on their[TPG] part to do that, but I think it’s a timing issue more than anything else,” Ergen said.