After nearly five years of reselling DISH Network Corp.'s (DISH) satellite TV service, AT&T Inc. (T) has decided to literally and figuratively switch to DIRECTV Inc. (DTV), effective February 1, though it’s unclear how current AT&T DISH customers will respond.
AT&T said only that it “will offer, market and sell co-branded AT&T/DISH Network services through its original deal,” which was extended by one month last week, through January 31, 2009. “After that date, existing AT&T DISH customers will continue to receive the same, quality service they enjoy today.”
AT&T did not say in a “customer FAQ” when current DISH customers will begin receiving DIRECTV programming, but did say it will offer no incentive for customers to make the switch. The telco promised to provide additional details as the date approaches.
The AT&T-DIRECTV deal was announced just one day after AT&T added a month to the DISH deal that was set to expire on Dec. 31. To confuse AT&T’s satellite TV piece of its strategy, AT&T has also resold DIRECTV service in the past.
Surprisingly, AT&T did not provide the duration or financial details of the DIRECTV commercial agreement. Fellow telco TV provider Verizon Communications Inc. (VZ) has been reselling the satellite service for some time, offering it to customers in its region not served by its FiOS network service.
One potential fly in the ointment for AT&T DISH customers is that DISH uses digital video recorders (DVR) that are different than the TiVo Inc. units used with DIRECTV service.
In its FAQ, AT&T claims current AT&T DISH Homezone users will see no impact from the change as they “will receive the same programming, customer service and bundle discount they receive today.”
DISH subscriber loss problems and a related drop in stock price led some industry analysts to speculate that AT&T would buy the struggling satellite operator when its resale deal ended.
The telco said new AT&T/DIRECTV customers will be able to enjoy DIRECTV programming packages, with the added benefit of “a discount for bundling their wireless, home phone and broadband services with AT&T,” which it already provides to AT&T DISH customers.
Perhaps AT&T listened to the evil robot cop from Terminator 2, which has been the focus of DIRECTV’s aggressive TV ad campaign, telling viewers to switch to DIRECTV.
"Our focus is on providing customers with a better TV experience than cable," said Jeff Weber, AT&T vice president-Video and Entertainment, in prepared comments. "AT&T/DIRECTV complements our premier AT&T U-verse TV service and gives customers another great choice for state-of-the-art, 100 percent digital programming."
