With consumers across the country downgrading, eliminating, or (worse) never signing up for tradition television service, DirecTV needs to find a way to continue growing revenue outside of its primary satellite TV service business. And a low-cost streaming video service could be the best way for the company to do this.
The streaming service wouldn’t bother trying to compete with industry leaders like Hulu and Netflix, but instead would target a specific demographic like Latino or children’s programing, according to DirecTV chief exec Mike White. Such a move would make sense because those demographics are currently underserved, and such a streaming service wouldn’t cannibalize DirecTV’s core satellite TV business.
DirecTV is also open to putting together a streaming video service that offers a select handful of channels at a lower price to entice younger consumers who aren’t interested in spending upwards of $50 per month. The company told investors they could expect to hear more about a potential streaming service over the next year.