It’s over guys, for those who are at the bottom toll of the seniority list expect to get layoff because DirecTV just lost the nfl network.
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AT&T, the destoyer of worlds.
Less than 10% of DTV customers were Sunday ticket subscriber# at its peak. The loss will mean some customers leave, but from a dollars and cents perspective the saves the company money. Google massively overpaid for a product that does not have a large reach.
Not sure the loss of NFLST is about revenue, as the company has never turned a profit off of that suite. It was a way to lure in and retain customers, which they haven’t been able to do the past 5+ yrs because satellite is in decline. This was always going to happen with or without Sunday Ticket.
We still lose 350 to 420 thousand customers per quarter. With the loss of Sunday Ticket, the internal estimates are 700,000 to 800,000 of the 1.5 million ST users will defect by end of summer 2023. This will be on top of the quarterly losses.
For you Field Ops guys, tomorrow, be prepared for the first round of force reductions to be announced. Friday's announcement will ask for volunteers on a per yard basis with those who accept the offer off payroll by February 1. Payout is determined by your regional CWA contract - most will get one week paid per year of service maxed at 8 weeks.
If the reduction in force numbers are not achieved through volunteers, then forced layoffs will be conducted based on seniority until the reduction numbers are achieved.
This will be an ongoing process throughout the remainder of 2023.
Good luck guys.
https://seekingalpha.com/article/4567094-directv-may-yet-cost-at-and-t-another-dividend-cut
TL;DR -
Some surveys showing as much as 23% of total subscribers being Ticket members. However, considering that the platform is half the size it was six years ago, that penetration may actually simply represent a consistent two million Ticket subs or so standing by their provider as others leave, representing a larger slice of a smaller pie. So there seems to be a lot of Ticket loyalty … which will go from being a DIRECTV asset to a liability as soon as the product they're loyal to leaves the DIRECTV umbrella.
DIRECTV regularly made a point of advertising a one-year free Sunday Ticket offer to its subscribers when they signed two-year contracts. Often, this pertained to renewals as well. This means that potentially as much as another two million subscribers who are not currently paying customers of Sunday Ticket may nevertheless be equally motivated to follow it to a new home, if they were receiving it for free at the time.
The Sunday Ticket departure, far from being a minor matter, could see DIRECTV lose as much as half its profit.
we were losing 500m a year to have the Sunday Ticket.
This is actually a good thing for our bottom line
The game is over for DTV...
https://www.msn.com/en-us/sports/nfl/directv-looks-rip-thanks-to-loss-of-nfl-sunday-ticket/ar-AA15zARB
The drones will sit back and wait to be bounced while anyone with an ounce of brains and energy will begin sending out resumes and prepare for the interview process.
I doubt the layoffs will be as bad as people claim. Company will very likely be saving money not paying 1.5 billion a year. Yes, they will still lose subscribers without a doubt. But this business is on a steady decline, not nosedive.