Thread regarding DIRECTV layoffs

What is the line?

What is the line where we drop below the "break even" point in terms of numbers customers and the ability to fund the basic operation of this company?

To the best I can discern from industry reports, we have somewhere between 11 million and 14 million customers. Of that number, we have roughly 1.5 million Directv Stream accounts and 2.5 million legacy AT&T U-Verse accounts of people stuck in multi-dwelling units under exclusive provider contracts.

Subtracting those outliers, that leaves roughly 7 to 10 million accounts on the legacy Sat side. Of that , approximately 2 million retain our services solely due to NFL Sunday Ticket. Once that bird flies the nest come January, we drop another 2 million?

Don't overlook the continued bleeding loss of 420,000 to 450,00 customers every quarter, a loss rate that has been pretty steady for at least the past 9 quarters.

Which brings me back to my original question - at what number of customers do we hit where the costs equals revenue barrier and how soon thereafter do we become a negative revenue enterprise?

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| 1922 views | | 7 replies (last January 10, 2023)
Post ID: @OP+1iJCCUCB

7 replies (most recent on top)

I don’t see the FCC approving a full merge of DISH and DTV satellite. They would own the market. Not sure how that will happen. DISH is also in decline. With the national focus on expansion of fiber to rural
areas, I’m not sure why anyone would pay for satellite much longer bc it won’t be the singular option. Until DTV can, at the very least be more competitive in pricing with the Stream service, I think you’ll see it completely dissolved within 3-5 yrs. There will be no DTV brand any longer.

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Post ID: @1Tfpu+1iJCCUCB

5 yrs and DTV as it is now will not exist. it’s inevitable, so keep that resume polished at all times

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Post ID: @1dpfl+1iJCCUCB

So I’m not sure if we can name names here. But it’s not just those numbers they hired someone that has a rep to clean house. I’ll just say Sitel and make it Reines and you can figure it out. Probably merge with Dish but it’s hard
To say in this economic environment. Best of luck!

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Post ID: @Nkuu+1iJCCUCB

Failing is tough to call. Our business (DBS, Stream, IPTV) is certainly in decline and expenses are increasing. It's hard to believe that consolidation will not occur with DISH Networks and DIRECTV to preserve DBS service. Maybe that's the first piece of the business sold off. Then what happens to IPTV-Uverse? Customers love the service but I suspect they could be transitioned to Stream given the right incentives. That leaves Stream which is basically a 75-150 channel expensive self-install Cable TV offering. The $20 discount for 2 months is paltry but is the best we can offer because of the payments to ATT and TPG. Be prepared and stay relevant with your skills and marketability.

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Post ID: @6jjf+1iJCCUCB

Yes, DTV will eventually be sold off piece by piece due to the cost of the satellite delivery platform. Not just that but who needs 300 plus channels anymore? It was an excellent run from 1998 to 2020 and something to be personally proud of as our team took part in the testing and launch of HD, HD PPV, NFL Ticket, and the Red Zone.
Good luck to everyone there from the veterans to the newest employees.

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Post ID: @5bbb+1iJCCUCB

Are you literally saying DTV will fail within years?

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Post ID: @4gkz+1iJCCUCB

Spot-on with your assessment, and the subscriber counts will worsen with the challenges that are occurring with the economic environment. TPG and ATT has to enact austerity measures (at a minimum) to keep DTV viable for a purchase or return to greater profit per subscriber. There's no doubt the future of our business is frightening and from my view there's not much that will change the tsunamic environment of subscriber losses. The staffing levels are way to high for the subscriber counts and must be reduced immediately and continue to be reduced quarterly until the business returns to growth or sold. There are many areas of the business that are non-essential and the time is now to stop pandering to the employees thinking this is a cool place to work, it's not.

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Post ID: @1jue+1iJCCUCB

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