After losing over $50 billion on a series of failed forays into content production and distribution, AT&T was forced to start selling stakes in its recently acquired media assets or risk weakening its monopolistic grip on telecom and internet delivery.
Netflix’s subscribers have slowed sharply in the first half of this year compared to 2020 because of the popularity of Disney+ among families, the loss of popular licensed content, and other streaming competition from the major studios.
In a recent survey of over 5,000 active online subscribers in the United States and Canada, 81% of respondents wished that paid streaming services like Netflix or Amazon Prime Video offered a free, ad-supported option.
SVOD is still a minor segment of the overall streaming market in Germany. Proportionally, Germany spends less than half of US households ($24 billion) on SVOD services when adjusted for currency and population.
AT&T is desperate to sell some or all of DirecTV to pay down its $180 billion mountain of debt. According to inside sources, the satellite service is being offered at a $20 billion valuation, marking a $29 billion loss since 2015.