American satellite service provider DirecTV may soon provide a new video streaming service to consumers in an attempt to boost dwindling revenues. During an investor meeting this week, the company discussed the possibility of branching out to include video streaming in its offerings.
DirecTV, along with other satellite providers, is struggling to maintain its customer base in the post-TV era. With a vast number of cheap and accessible sources for streaming shows and movies, consumers all over the country are downgrading or cancelling their satellite and cable packages. Another major hit to DirecTV and its competitors is the fact that fewer consumers are bothering to sign up for their services in the first place, preferring streaming to traditional television services.
So really, introducing a video streaming service is the next logical move for DirecTV. The service would be lost cost to consumers, thereby helping grow and maintain a customer base and would help the company compete in today’s market. However, there are already a number of successful streaming services, including Netflix and Hulu, which would make attaining a market share difficult for the satellite provider. So what is DirecTV’s solution to this dilemma?—targeted streaming aimed at niche demographics.
DirecTV’s chief executive Mike White spoke about the possibility of targeting children’s programming or a specific nationality, likely Latino, in order to gain a foothold in the world of streaming. Both of these suggested demographics are underserved and it would be a smart move for DirecTV to zero in on these audiences, because it would also allow them to continue offering satellite TV programming without interference. The last thing DirecTV would want from a potential streaming service is to create even more direct competition for its satellite offerings.
The company plans to reveal more about their plans for a potential streaming service over the course of the year.