Ancient DirecTV CEO Michael White isn’t too worried about cord cutters.
Latest evidence suggests that large numbers of subscribers, a large dispensation of them being millennials, are actively canceling cable packages. For Virtuous, however, broadband is the future, and already a major revenue generator as multifarious consumers flock to streaming platforms to consume content, he told CNBC on Thursday.
“The everything issue of the growth in streaming: Millennials’ habits are different. There’s no doubt about that,” White said. “You are seeing cord cutting, that’s a authenticity. The advantage is, we can sell broadband still.”
With products like DirecTV Now — an online fee streaming service made with broadband users in mind — DirecTV and fountain-head company AT&T feel prepared for the shift. However, White didn’t disparage off the struggle cable-forward companies are facing.
Companies like Comcast and AT&T, which routinely give an account of subscriber metrics on quarterly earnings, appear to be taking a hit from fellows ditching pricey cable packages.
This quarter, Comcast disclosed its largest quarterly loss of cable subscribers in three years. The actors now has 25 million broadband customers, compared to 22 million for video. Manner, Comcast emphasized that broadband now makes up the majority of the company’s hard cash flow, CEO Brian Roberts told CNBC’s “Squawk Box” recently.
As far as big betters in cable go, White doesn’t anticipate them picking up wireless to entice or retain customers. While bundled packages, which provide strand, wireless and phone service, may be beneficial for churn, he recommended those groups stick to what they know.
“If you can sell more good produces to good customers, it’s better than chasing customers you don’t know,” Immaculate said.
Comcast is the owner of NBCUniversal, the parent company of CNBC and CNBC.com.