DirecTV owner AT&T says it’s done buying satellites, marking a switch to OTT delivery.
“We’ve launched our last satellite,” John Donovan, CEO of AT&T Communications, said during a presentation to analysts, reports Space News.
He and other AT&T executives said the rampant growth of internet-delivered video services that bypass satellite and cable networks is so significant that it is now the company’s future.
“We are seeing shifts in viewing from traditional TV viewing — cable, satellite — to on-demand viewing, and streaming on-demand viewing,” said Randall Stephenson chairman and CEO of AT&T Inc.
Those shifts, he said, have accelerated an overhaul of business models among media companies that are “recognising that they no longer have the luxury to rely exclusively on wholesale distribution of their content to customers going through satellite and cable companies.”
Broadband TV Views. Television viewing is shifting from linear to on-demand – slowly, but surely. This is bad news for satellite operators, where around 50% of turnover is coming from video delivery services. Viewers are demanding more personalised and on-demand services, which satellites can’t deliver. Add to that the facts that broadband access is becoming more widespread and new delivery techniques such as 5G will reach more people.