DirecTV abandons satellite in favor of OTT

DirecTV owner AT&T has said it has finished purchasing satellites, marking the switch to OTT delivery.

“We have launched our latest satellite,” John Donovan, CEO of AT&T Communications, said during an analyst presentation, reports Space News.

He and other AT&T executives have said the rampant growth of Internet-delivered video services that bypass satellite and cable networks is so important that it is now the future of the company.

“We are seeing changes in viewing from traditional television – cable, satellite – to on-demand display and on-demand streaming,” said Randall Stephenson, president and CEO of AT&T Inc.

These changes, he said, have accelerated an overhaul of business models among media companies that “recognize that they no longer have the luxury of relying exclusively on the wholesale distribution of their content to customers through the media. satellite and cable companies “.

Broadband TV views. Watching television is shifting from linear to on-demand – slowly, but steadily. This is bad news for satellite operators, about 50% of their revenue from video streaming services. Viewers demand more personalized and on-demand services, which satellites cannot provide. Add to that the fact that broadband access is becoming more prevalent and new delivery techniques such as 5G will reach more people.

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