AT&T to pay $60 million over US allegations it lied in its ‘unlimited data’ promises

AT&T will pay $60 million to resolve U.S. allegations it misled millions of smartphone customers by charging them for “unlimited” data plans but reducing data speeds if they used too much, the Federal Trade Commission (FTC) said on Wednesday. As part of the settlement of the 2014 complaint, AT&T is also prohibited from making any representation about the speed or amount of its mobile data, without also disclosing any material restrictions on the data. AT&T issued a brief statement acknowledging


AT&T will pay $60 million to resolve U.S. allegations it misled millions of smartphone customers by charging them for “unlimited” data plans but reducing data speeds if they used too much, the Federal Trade Commission (FTC) said on Wednesday.
As part of the settlement of the 2014 complaint, AT&T is also prohibited from making any representation about the speed or amount of its mobile data, without also disclosing any material restrictions on the data.
AT&T issued a brief statement acknowledging
AT&T to pay $60 million over US allegations it lied in its ‘unlimited data’ promises Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-11-05
Keywords: news, cnbc, companies, allegations, customers, promises, statement, speed, unlimited, million, ftc, lied, att, used, statementthe, speeds, pay, data


AT&T to pay $60 million over US allegations it lied in its 'unlimited data' promises

AT&T will pay $60 million to resolve U.S. allegations it misled millions of smartphone customers by charging them for “unlimited” data plans but reducing data speeds if they used too much, the Federal Trade Commission (FTC) said on Wednesday.

As part of the settlement of the 2014 complaint, AT&T is also prohibited from making any representation about the speed or amount of its mobile data, without also disclosing any material restrictions on the data.

AT&T issued a brief statement acknowledging that it had reached a settlement with the FTC.

“Even though it has been years since we applied this network management tool in the way described by the FTC, we believe this is in the best interests of consumers,” AT&T said in an emailed statement.

The company had fought the FTC in court, saying it had no jurisdiction to bring the case, but lost in 2018.The FTC alleged that AT&T would begin to throttle “unlimited” customers’ data use after they used as little as two gigabytes of data in a month. Netflix’s website says that watching its shows uses about 1 gigabyte per hour of standard

definition video.

Andrew Smith, director of the FTC’s Bureau of Consumer Protection, said AT&T made promises it did not keep. “While it seems obvious, it bears repeating that Internet providers must tell people about any restrictions on the speed or amount of data promised,” he said in a statement.

The $60 million will be deposited into a fund to provide partial refunds to both current and former customers who had signed up for unlimited plans prior to 2011 but had their data speeds reduced, or “throttled” by AT&T when their usage went past a certain threshold.

FTC Commissioner Rohit Chopra said he would push for big companies to be held responsible for failing to live up to agreements. “Scammers come in all sizes,” he said in a statement.


Company: cnbc, Activity: cnbc, Date: 2019-11-05
Keywords: news, cnbc, companies, allegations, customers, promises, statement, speed, unlimited, million, ftc, lied, att, used, statementthe, speeds, pay, data


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AT&T gives HBO customers a free bonus with HBO Max, but finding new subscribers is the big challenge

AT&T Chief Operating Officer John Stankey said WarnerMedia is working with pay-TV distributors to give current HBO subscribers access to HBO Max. If HBO Max renders HBO obsolete, the quality brand of HBO could diminish over time. While HBO will live on as a brand within the HBO Max application, it’s possible consumers, over time, will view HBO Max as synonymous with HBO. HBO Max will actually become profitable in 2025 when 50 million Americans are subscribing to HBO Max, according to AT&T. It’s


AT&T Chief Operating Officer John Stankey said WarnerMedia is working with pay-TV distributors to give current HBO subscribers access to HBO Max.
If HBO Max renders HBO obsolete, the quality brand of HBO could diminish over time.
While HBO will live on as a brand within the HBO Max application, it’s possible consumers, over time, will view HBO Max as synonymous with HBO.
HBO Max will actually become profitable in 2025 when 50 million Americans are subscribing to HBO Max, according to AT&T.
It’s
AT&T gives HBO customers a free bonus with HBO Max, but finding new subscribers is the big challenge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-30  Authors: alex sherman
Keywords: news, cnbc, companies, customers, big, subscribers, challenge, million, service, free, hbo, gives, bonus, series, content, finding, max, att, streaming


AT&T gives HBO customers a free bonus with HBO Max, but finding new subscribers is the big challenge

Congratulations HBO subscribers! You’re the big winners from AT&T’s WarnerMedia Day presentation.

AT&T priced HBO Max, its signature streaming service, at $14.99 per month. That happens to be the current price of a standard HBO subscription. AT&T Chief Operating Officer John Stankey said WarnerMedia is working with pay-TV distributors to give current HBO subscribers access to HBO Max. AT&T will also offer HBO Max to all of its premium unlimited wireless customers and its top-tier home broadband subscribers for no additional cost. The service will launch in May.

Stankey’s goal is to get 50 million HBO Max U.S. subscribers by 2025. By pricing HBO Max identically to HBO, he has made the decision an easy one for the 34 million U.S. customers that currently get HBO. Even if high-minded HBO subscribers despise “The Big Bang Theory” and don’t have kids clamoring for “Sesame Street” or DC comic book-themed movies and shows, there’s probably something in the 10,000 hours of content, including 50 new original series by 2021, that a consumer will want for no additional cost. AT&T spent about two hours cycling through the myriad content available on HBO Max, ranging from the entire catalog of “South Park” and “The West Wing” episodes to a reboot of “Gossip Girl” to “Ellen’s Home Design Challenge,” an unscripted series featuring Ellen DeGeneres.

There are drawbacks to this strategy. If HBO Max renders HBO obsolete, the quality brand of HBO could diminish over time. AT&T acquired DirecTV in 2015 and has seen millions of Americans cancel the satellite service as it has struggled to convince consumers why they should continue to pay for what was once a premium brand. HBO is known for award-winning shows like “The Sopranos,” “The Wire” and “Game of Thrones.” While HBO will live on as a brand within the HBO Max application, it’s possible consumers, over time, will view HBO Max as synonymous with HBO. “The Big Bang Theory” and Looney Tunes cartoons are not HBO.

The question is how many non-HBO subscribers will be compelled to sign up for HBO Max because of the new programming. AT&T is setting the bar low, projecting just 41 million U.S. subscribers by 2022. Considering HBO already has 34 million subscribers and AT&T is giving HBO Max away for free to potentially millions more, this seems like a target that won’t be difficult to hit.

AT&T is aware of the challenges to gain new subscribers and is specifically tailoring new originals to kids, women and teens to try to entice a wider audience for HBO Max than it has for HBO. AT&T will launch 50 new original series on HBO Max by 2021, adding to the 38 series planned for HBO. That’s almost 90 originals for HBO Max customers. HBO is spending $2 billion right off the bat on the new programming.

HBO Max will actually become profitable in 2025 when 50 million Americans are subscribing to HBO Max, according to AT&T. AT&T’s bet, as outlined here, is that the acceleration of cable cancellations will help push more Americans toward streaming services. HBO Max is currently the most expensive of the major streaming offerings at $14.99 per month, topping Netflix’s most popular $12.99 plan, Hulu’s ad-free $11.99 service and Disney’s $6.99 Disney+.

It’s hard not to view HBO Max as a gift to HBO subscribers. Long-term brand concerns aside, customers who pay for HBO should be overjoyed with a slew of new content for free — at least some of which will appeal to almost everyone.

But to pay for all the new content, AT&T will eventually need millions of new paying subscribers in an environment with its entire slate of competition offering products at a lower price.

“There are three pillars required for success in streaming: premium content, technology platform and marketing and distribution,” Stankey said at the WarnerMedia presentation of HBO Max on Tuesday. “Only AT&T enters this space with solid footing on all three.”

We’ll see.

Follow @CNBCtech on Twitter for the latest tech industry news.


Company: cnbc, Activity: cnbc, Date: 2019-10-30  Authors: alex sherman
Keywords: news, cnbc, companies, customers, big, subscribers, challenge, million, service, free, hbo, gives, bonus, series, content, finding, max, att, streaming


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If you had invested in Verizon 10 years ago, here’s how much you’d have now

Not only is the addition of over a million new users a good thing for business, it’s also a positive for Verizon stock and shareholders. If you invested in Verizon 10 years ago, that decision would have paid off. When it comes to subscribers, Verizon and AT&T remain close in number. The company is also offering a free one-year subscription for Disney’s soon-to-launch Disney+ streaming service to new and existing Verizon wireless unlimited customers. On the day of the announcement last week, Veri


Not only is the addition of over a million new users a good thing for business, it’s also a positive for Verizon stock and shareholders.
If you invested in Verizon 10 years ago, that decision would have paid off.
When it comes to subscribers, Verizon and AT&T remain close in number.
The company is also offering a free one-year subscription for Disney’s soon-to-launch Disney+ streaming service to new and existing Verizon wireless unlimited customers.
On the day of the announcement last week, Veri
If you had invested in Verizon 10 years ago, here’s how much you’d have now Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-30  Authors: anna hecht
Keywords: news, cnbc, companies, ago, stock, wireless, youd, plans, att, heres, verizons, service, invested, return, subscribers, verizon


If you had invested in Verizon 10 years ago, here's how much you'd have now

On Friday, Verizon released third-quarter earnings that beat Wall Street expectations. In Q3 alone, the wireless phone carrier added 615,000 more postpaid customers, or those who are billed at the end of each month, and 444,000 prepaid subscribers.

Not only is the addition of over a million new users a good thing for business, it’s also a positive for Verizon stock and shareholders.

If you invested in Verizon 10 years ago, that decision would have paid off. A $1,000 investment in 2009 would be worth nearly $3,500 as of Oct. 28, 2019, for a total return of around 250%, according to CNBC calculations. In the same time frame, by comparison, the S&P 500 earned a total return of nearly 260%. Verizon’s current share price is hovering around $60.

However, while an investment in Verizon would have earned you a profit, it’s important to note you would have been better off buying a low-cost index fund that tracks the market since the shares underperformed the return of the S&P 500.

While Verizon’s stock performance over the last decade couldn’t match that of the S&P 500’s, any individual stock can over- or underperform and past returns do not predict future results. There are several factors that have contributed to Verizon’s lackluster stock performance such as some acquisitions in the last 10 years like AOL in 2015 and Yahoo in 2017.

CNBC: Verizon’s stock as of October 28, 2019.

Verizon’s most competitive rivals are AT&T, T-Mobile U.S. and Sprint. When it comes to subscribers, Verizon and AT&T remain close in number. In Q3 of 2018, Verizon had nearly 154 million U.S. subscribers and AT&T had just over 150 million, according to industry reporting from Fierce Wireless.

Verizon’s recent uptick in monthly subscribers resulted in part from the carrier creating new unlimited plans with lower prices. The cheapest of the four new plans starts at $35.

The company is also offering a free one-year subscription for Disney’s soon-to-launch Disney+ streaming service to new and existing Verizon wireless unlimited customers. Not only does Verizon hope this offer will incentivize new customers, but industry experts say it’s also a way of offsetting the expected success of HBO Max, a new streaming service that AT&T plans to launch in 2020.

On the day of the announcement last week, Verizon’s stock rose modestly, while shares of Disney jumped more than 1.5%.

In 2017, Verizon began trying out its 5G coverage, the fifth generation of wireless network capabilities, which promises quicker speeds, less lag time and better overall service.


Company: cnbc, Activity: cnbc, Date: 2019-10-30  Authors: anna hecht
Keywords: news, cnbc, companies, ago, stock, wireless, youd, plans, att, heres, verizons, service, invested, return, subscribers, verizon


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AT&T bows to pressure from activist investor Elliott, CEO will stay on through 2020

Randall Stephenson, CEO of AT&T, speaking at the Business Roundtable CEO Innovation Summit in Washington, DC. The plan “benefited from our engagement with our owners, including Elliott Management,” Stephenson said in a statement. The company also said that it expects Randall Stephenson to remain chief executive through at least 2020. In a letter to shareholders supporting the plan, Elliott Management said AT&T would evaluate all potential CEO candidates and separate the role of Chairman and CEO.


Randall Stephenson, CEO of AT&T, speaking at the Business Roundtable CEO Innovation Summit in Washington, DC.
The plan “benefited from our engagement with our owners, including Elliott Management,” Stephenson said in a statement.
The company also said that it expects Randall Stephenson to remain chief executive through at least 2020.
In a letter to shareholders supporting the plan, Elliott Management said AT&T would evaluate all potential CEO candidates and separate the role of Chairman and CEO.
AT&T bows to pressure from activist investor Elliott, CEO will stay on through 2020 Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-28  Authors: amelia lucas
Keywords: news, cnbc, companies, att, quarter, stay, investor, ceo, bows, elliott, 2020, pressure, billion, stephenson, plan, management, debt, activist, company, net


AT&T bows to pressure from activist investor Elliott, CEO will stay on through 2020

Randall Stephenson, CEO of AT&T, speaking at the Business Roundtable CEO Innovation Summit in Washington, DC. on Dec. 6th, 2018.

The plan “benefited from our engagement with our owners, including Elliott Management,” Stephenson said in a statement.

The company also said that it expects Randall Stephenson to remain chief executive through at least 2020.

Elliott, which revealed a $3.2-billion stake in the company in September, has been pressing the telecommunications giant to cut costs, make management changes and scale back expansion aspirations. The two sides have held discussions, Reuters reported earlier this month.

AT&T on Monday unveiled a three-year strategic plan that included adding two new board members, selling off up to $10 billion worth of non-core businesses next year and paying off all its debt from the purchase of Time Warner, bowing to pressure from activist investor Elliott Management.

In a letter to shareholders supporting the plan, Elliott Management said AT&T would evaluate all potential CEO candidates and separate the role of Chairman and CEO.

“We commend AT&T for the positive steps announced today, which will create substantial and enduring shareholder value at one of America’s greatest companies,” Elliott said in a statement.

A source familiar with the matter said Monday that Elliott is supportive of the board member AT&T is expected to nominate this year at the next board meeting.

To reduce its debt pile of $153.5 billion at the end of the third quarter, AT&T has been on a selling spree and has recently sold its assets in Puerto Rico to Liberty Latin America for $1.95 billion.

One such sale was announced over the weekend. Investment group PPF, owned by the Czech Republic’s wealthiest businessman, Petr Kellner, has agreed to buy broadcaster Central European Media Enterprises (CME) in a cash deal valued at about $2.1 billion, marking the exit of AT&T, CME’s largest shareholder.

The company expects generate $14 billion through asset sales and other initiatives by the end of this year. It reduced its net debt by $12.7 billion so far this year.

Total operating revenue in the third quarter ended Sept. 30 fell to $44.59 billion from $45.74 billion, a year earlier. Analysts were expecting about $45 billion, according to IBES data from Refinitiv.

Excluding items, AT&T earned 94 cents per share, above analysts’ estimates of 93 cents.

AT&T added 101,000 net new phone subscribers who pay a monthly bill during the third quarter. Wall Street estimated the carrier would gain 61,000 net new customer additions, according to a note from Cowen analysts.

Shares of AT&T were up slightly at $37.50 in trading before the bell.


Company: cnbc, Activity: cnbc, Date: 2019-10-28  Authors: amelia lucas
Keywords: news, cnbc, companies, att, quarter, stay, investor, ceo, bows, elliott, 2020, pressure, billion, stephenson, plan, management, debt, activist, company, net


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Stocks making the biggest moves premarket: AT&T, Tiffany, Walgreens, Spotify, GM & more

That would value Tiffany at about $14.5 billion and would be about 22% higher than Tiffany’s Friday closing price. Walgreens – The drug store operator beat estimates by 2 cents a share, with adjusted quarterly profit of $1.43 per share. AT&T – AT&T reported adjusted quarterly profit of 94 cents per share, a penny a share above estimates. Restaurant Brands – The restaurant operator matched analysts’ forecasts, with adjusted quarterly profit of 72 cents per share. Spotify – The music streaming ser


That would value Tiffany at about $14.5 billion and would be about 22% higher than Tiffany’s Friday closing price.
Walgreens – The drug store operator beat estimates by 2 cents a share, with adjusted quarterly profit of $1.43 per share.
AT&T – AT&T reported adjusted quarterly profit of 94 cents per share, a penny a share above estimates.
Restaurant Brands – The restaurant operator matched analysts’ forecasts, with adjusted quarterly profit of 72 cents per share.
Spotify – The music streaming ser
Stocks making the biggest moves premarket: AT&T, Tiffany, Walgreens, Spotify, GM & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-28  Authors: peter schacknow, fred imbert
Keywords: news, cnbc, companies, tiffany, cents, forecasts, att, profit, financial, quarterly, contract, billion, spotify, moves, making, biggest, share, premarket, revenue, reported, walgreens, stocks


Stocks making the biggest moves premarket: AT&T, Tiffany, Walgreens, Spotify, GM & more

Check out the companies making headlines before the bell:

Tiffany – Tiffany was approached by French luxury goods maker LVMH about a possible acquisition. LVMH did not give financial details about its bid, but multiple reports say it is an all-cash bid of about $120 per share. That would value Tiffany at about $14.5 billion and would be about 22% higher than Tiffany’s Friday closing price.

Walgreens – The drug store operator beat estimates by 2 cents a share, with adjusted quarterly profit of $1.43 per share. Revenue also beat forecasts and Walgreens raised its cost-saving target to more than $1.8 billion by fiscal 2022 from a prior goal of more than $1.5 billion.

AT&T – AT&T reported adjusted quarterly profit of 94 cents per share, a penny a share above estimates. Revenue was slightly below Wall Street forecasts. AT&T also announced a 3-year outlook, foreseeing compounded annual revenue growth of 1% to 2%, targeting modest dividend increases, and paying off debt from the Time Warner acquisition by 2022. Activist investor Elliott Management expressed support for AT&T’s announcement.

Restaurant Brands – The restaurant operator matched analysts’ forecasts, with adjusted quarterly profit of 72 cents per share. Revenue missed forecasts, however, after the company’s Tim Hortons chain reported a surprise drop in comparable sales, negating stronger performances at Burger King and Popeyes.

Spotify – The music streaming service reported an unexpected quarterly profit, with revenue also above analysts’ forecasts on strong monthly active user and premium subscriber numbers. Separately, Chief Financial Officer Barry McCarthy will retire in January, after overseeing the company’s 2018 direct listing.

Microsoft – Microsoft was awarded a $10 billion Pentagon cloud computing contract, beating out Amazon.com. Amazon is considering options for protesting the award, according to Reuters.

General Motors – GM workers have ratified a new four-year labor contract, ending a 40-day strike. The United Auto Workers union will use that contract as the basis for negotiations with Ford and Fiat Chrysler.

HSBC – HSBC cut its 2020 profit outlook after reporting earnings that were well below analysts’ forecasts. The lender also said it would be undergoing a restructuring to revamp its banking business in the U.S., U.K., and Europe.

Liberty Property Trust – Liberty agreed to be bought by rival industrial real estate owner Prologis for an all-stock deal worth $12.6 billion.

Wells Fargo – Wells Fargo has laid off more than 200 business bankers in recent months, according to sources familiar with the matter who spoke to Reuters.

PG&E – California Gov. Gavin Newsom told Bloomberg he would like to see Warren Buffett’s Berkshire Hathaway make a bid for the bankrupt utility. Berkshire’s energy subsidiary already has a presence in California and elsewhere.

Adobe – Adobe said it became aware of a “vulnerability” in one of its prototype software environments late last week. The software company promptly shut down the affected areas, which it said contained email addresses but no passwords or financial information.

Estee Lauder – The cosmetics maker was downgraded to “neutral” from “overweight” at Piper Jaffray, which cited a survey that said female teens are wearing less makeup.


Company: cnbc, Activity: cnbc, Date: 2019-10-28  Authors: peter schacknow, fred imbert
Keywords: news, cnbc, companies, tiffany, cents, forecasts, att, profit, financial, quarterly, contract, billion, spotify, moves, making, biggest, share, premarket, revenue, reported, walgreens, stocks


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AT&T, Disney and Comcast have very different plans for the streaming wars — here’s what they’re doing and why

But examining the streaming products of AT&T’s WarnerMedia, Disney and Comcast’s NBCUniversal in isolation, a different concept reveals itself. As much as the old media giants might envy Wall Street’s years-long love affair with Netflix, the cable bundle still rules. The three most significant new streaming services from legacy media companies are WarnerMedia’s HBO Max, Disney+ and Comcast’s Peacock. The question is how many of today’s 89 million cable subscribers would actually pay to subscribe


But examining the streaming products of AT&T’s WarnerMedia, Disney and Comcast’s NBCUniversal in isolation, a different concept reveals itself.
As much as the old media giants might envy Wall Street’s years-long love affair with Netflix, the cable bundle still rules.
The three most significant new streaming services from legacy media companies are WarnerMedia’s HBO Max, Disney+ and Comcast’s Peacock.
The question is how many of today’s 89 million cable subscribers would actually pay to subscribe
AT&T, Disney and Comcast have very different plans for the streaming wars — here’s what they’re doing and why Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-27  Authors: alex sherman
Keywords: news, cnbc, companies, cable, disney, doing, theyre, different, att, max, espn, streaming, plans, comcast, warnermedia, bundle, heres, hbo, wars, month, million


AT&T, Disney and Comcast have very different plans for the streaming wars -- here's what they're doing and why

Bob Iger, CEO, The Walt Disney Company Scott Mlyn | CNBC

It might seem like media companies are finally embracing the future as nearly every major programmer is launching a streaming service. But examining the streaming products of AT&T’s WarnerMedia, Disney and Comcast’s NBCUniversal in isolation, a different concept reveals itself. The giants of media are tailoring their offerings around their relative strength in traditional pay-TV. The pricing and roll-out strategies of streaming services are linked to how much media companies have to gain, or lose, if consumers start relying on streaming video in lieu of cable TV. As much as the old media giants might envy Wall Street’s years-long love affair with Netflix, the cable bundle still rules. This chart explains the situation clearly. It shows approximately how much each media company currently generates from the cable networks it owns within the standard bundle. Pricing estimates come from SNL Kagan, a research arm of S&P Global Market Intelligence. For example, for Disney, that’s ESPN and all of the associated ESPNs (ESPN2, ESPNU, etc.) plus the Disney channels, FX, National Geographic and its other owned networks (not including ABC, for which it gets additional broadcast retransmission fees). For that entire bundle, Disney makes more than $16 per cable subscriber per month. In other words, if you pay for a standard cable package, $16 of what you’re paying per month goes to Disney. AT&T’s WarnerMedia networks, led by TNT, CNN and TBS, bring in about $6.50 per cable customer per month. Comcast’s NBCUniversal networks — which include CNBC, as well as USA, Bravo, MSNBC, and others — earn a little less than $6 per person. The chart doesn’t include regional sports networks, many of which are owned by Comcast, or a la carte offerings like CBS’s Showtime or AT&T’s HBO, which aren’t part of a standard package. All of this is important because it helps explain the business considerations behind the streaming wars, which kick off in earnest this fall. The three most significant new streaming services from legacy media companies are WarnerMedia’s HBO Max, Disney+ and Comcast’s Peacock. Disney+ will be first out of the date, with a debut on Nov. 12. WarnerMedia will officially unveil HBO Max, its streaming offering, at an event in Burbank, California, on Oct. 29, and it’s going to be available in the first half of 2020. Peacock is coming out around the same time. Let’s take a look at these companies different strategies, ranked on a continuum from “most cool with your canceling cable” to “least cool with your canceling cable.”

Most cool with your canceling cable: HBO Max

AT&T has taken the most aggressive position with its streaming offering in terms of preparing for a world without traditional pay-TV. WarnerMedia already sells HBO outside the cable bundle, charging $14.99 (call it $15) a month. It has 35 million U.S. subscribers, most of whom watch as an add-on to a traditional pay TV package. Apart from that, the company brings in about $6.50 from all of its cable networks per month, Kagan estimates. While AT&T owns DirecTV, a national pay-TV distributor, that business is hemorrhaging subscribers. What AT&T really wants you to do is pay for AT&T wireless. In a few years, AT&T could also provide you with a 5G high-speed home broadband service, competing directly against cable companies. Realizing he doesn’t have as much to protect in the existing pay-TV bundle as Disney, WarnerMedia CEO John Stankey has decided to offer consumers a robust package of content with HBO Max. He’s spending billions on shows like “Friends” and “The Big Bang Theory” (even if sometimes the shows are owned by Warner Bros. themselves) to stream exclusively as part of the package. HBO Max will also include all HBO programming, shows and movies from the WarnerMedia library, new originals and, eventually, (likely several years from now) live programming from CNN, TNT and TBS, including sports, Stankey said in June. That’s a kitchen sink offering. WarnerMedia is preparing for a future where you aren’t paying for cable TV. Stankey told CNBC his goal was to get 70 million to 80 million subscribers for HBO Max. Of that, he wants 50 million U.S. susbcribers by 2025, Reuters reported Friday. How realistic is that? CNBC reported in June that WarnerMedia was pondering a price between $15-$18 per month for HBO Max. If AT&T prices HBO Max at the same $15 price as HBO (or lower), it will easily be able to transfer HBO’s existing 35 million subscribers to HBO Max. However, if it prices HBO Max at even a dollar or two more than HBO, it will need to convince current HBO subscribers to switch in addition to picking up new subscribers. WarnerMedia will announce its pricing of HBO Max at WarnerMedia Day on October 29, according to a person familiar with the matter. If Stankey can execute his vision, it will be great news for AT&T. 80 million people paying $15-$18 per month for HBO Max is a lot more money than 80 million paying WarnerMedia $6.50 per month for its cable channels (of which only 35 million are paying for HBO). That could vault AT&T closer to the Netflix-like multiples that investors crave. The question is how quickly will customers cancel traditional pay-TV for a streaming-only world? Without a significant flood of cord cutters, it’s dubious to suspect AT&T can add 15 million more HBO Max subscribers. If WarnerMedia’s original programming is strong enough, AT&T is well positioned to make a lot more money in a world where four or five streaming services supplant cable TV. But if all the “extra” with HBO Max doesn’t convince many new people to give HBO a try, AT&T risks falling severely short of its subscriber goal — especially when other streaming services are actively hampering the shift away from cable TV.

Eventually OK with your canceling cable: Disney

If Disney truly wanted to transition Americans away from the cable bundle and to a new era of streaming TV, it would offer a product that included all of its content, linear and on-demand. That would include all of ESPN’s content, such as “Monday Night Football” and live games from leagues including Major League Baseball and the National Basketball Association. CEO Bob Iger isn’t doing that. Of the $16.10 Disney earns per month from cable subscribers, ESPN and its associated networks take in about $9 for every person that subscribes to a cable bundle, Kagan estimates. Disney also collects billions each year in advertising revenue connected to live sports on ESPN — people have to watch ads when they can’t fast-forward. This setup is a wonderful deal for Disney. If you’re a cable subscriber, whether like sports or not, you’re paying Disney $9 per month for ESPN networks, and you’re paying more than $16 to Disney overall. So Disney is in no hurry to have you cancel cable. In fact, Disney offers a Hulu with Live TV product that’s basically cable — a bundle of channels for $44.99 per month. That’s why why Disney hasn’t made ESPN available as a separate streaming service yet. Instead, Disney’s streaming offerings are: Disney+, a $6.99-a-month ($5.83-a-month with an annual subscription) family-friendly streaming service that will almost certainly be wildly popular, showcasing old Disney movies, Star Wars films, “The Simpsons” TV shows, new originals and more

ESPN+, a $4.99-a-month sports streaming service that does not include most of ESPN’s most popular games or live sports.

Hulu, which features original shows and episodes of dramas and sitcoms that currently air on broadcast and cable TV, plus many popular shows that are now off air, such as “Seinfeld,” “How I Met Your Mother,” and “Modern Family.” (Hulu has been a joint venture between Disney and several other companies, including Comcast, but Disney plans to take complete ownership within the next five years.) “There’s a migration that’s not going to slow down, it’s going to speed up, to direct-to-consumer services,” said Iger in an interview with CNBC. “But ESPN the linear channel is still very valuable to us and distributors. Down the road you could see a shift [of programming] to some extent to ESPN+, but that’s at a time when we believe the shift from a consumer perspective will be significant enough to warrant that.” In other words, Disney knows people are going to keep canceling cable but is in no hurry to accelerate this shift. When Disney decides the time is right, a bundle of Hulu, Disney+ and ESPN is a compelling replacement product for traditional pay-TV. Hulu with ads is $6 per month. Disney+ is $6 or $7 per month. If Disney were to make a standalone ESPN service at $10 per month, it would earn $22-$23 a month from consumers. That’s more than the $16.10 it takes in today. The question is how many of today’s 89 million cable subscribers would actually pay to subscribe to ESPN streaming? Probably far less than 89 million. Moreover, cable providers know that ESPN’s exclusivity in the cable bundle helps keep a pay-TV bundle alive. That gives Disney leverage to keep boosting prices for ESPN. So Disney is taking the transition nice and slowly.

Least cool with your canceling cable: Comcast


Company: cnbc, Activity: cnbc, Date: 2019-10-27  Authors: alex sherman
Keywords: news, cnbc, companies, cable, disney, doing, theyre, different, att, max, espn, streaming, plans, comcast, warnermedia, bundle, heres, hbo, wars, month, million


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Stocks making the biggest moves premarket: Verizon, Amazon, Intel, AT&T, Visa, Uber & more

Check out the companies making headlines before the bell:Verizon – Verizon reported a quarterly profit of $1.25 per share, a penny a share above estimates. VF Corp. – The apparel maker reported a quarterly profit of $1.26 per share, falling 5 cents a share short of estimates. Intel – Intel beat estimates by 18 cents a share, with quarterly profit of $1.42 per share. The Wall Street Journal reports that ABC, NBC, Fox, Conde Nast, and the Washington Post are among the outlets that have agreed to p


Check out the companies making headlines before the bell:Verizon – Verizon reported a quarterly profit of $1.25 per share, a penny a share above estimates.
VF Corp. – The apparel maker reported a quarterly profit of $1.26 per share, falling 5 cents a share short of estimates.
Intel – Intel beat estimates by 18 cents a share, with quarterly profit of $1.42 per share.
The Wall Street Journal reports that ABC, NBC, Fox, Conde Nast, and the Washington Post are among the outlets that have agreed to p
Stocks making the biggest moves premarket: Verizon, Amazon, Intel, AT&T, Visa, Uber & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-25  Authors: peter schacknow, fred imbert
Keywords: news, cnbc, companies, intel, stocks, moves, wall, street, att, service, profit, uber, million, visa, share, estimates, making, reported, revenue, quarterly, premarket, verizon, biggest


Stocks making the biggest moves premarket: Verizon, Amazon, Intel, AT&T, Visa, Uber & more

Check out the companies making headlines before the bell:

Verizon – Verizon reported a quarterly profit of $1.25 per share, a penny a share above estimates. Revenue also came in above Wall Street forecasts, helped by a greater-than-expected increase in postpaid subscribers.

VF Corp. – The apparel maker reported a quarterly profit of $1.26 per share, falling 5 cents a share short of estimates. Revenue was also less than analysts had expected, amid weaker demand for brands like North Face and Vans. The company reaffirmed its full-year forecast, however, and announced a 5 cent a share increase in its quarterly dividend to 48 cents per share.

Amazon.com – Amazon reported quarterly earnings of $4.23 per share, below the consensus estimate of $4.62. Revenue was above Wall Street expectations, however. The company reported its first year-over-year profit decline in more than two years, as it spent more on one-day shipping and other initiatives.

Intel – Intel beat estimates by 18 cents a share, with quarterly profit of $1.42 per share. The chip maker’s revenue was also above forecasts and Intel raised its full-year revenue outlook amid strong demand, and it added $20 billion to its share buyback program.

AT&T – Chief Operating Office John Stankey told Reuters that the company’s HBO Max service aims to reach about 80 million global subscribers by 2025, with about 50 million in the U.S. He also said the service will be available for free to 10 million AT&T customers who are also HBO subscribers when it launches next spring.

Facebook – Facebook is launching a news service today to a limited test audience of 200,000 users. The Wall Street Journal reports that ABC, NBC, Fox, Conde Nast, and the Washington Post are among the outlets that have agreed to participate.

Gilead Sciences – Gilead came in a penny a share above estimates, with a quarterly profit of $1.75 per share. The drugmaker’s revenue was essentially in line with forecasts. Gilead reported lower-than-expected sales of its cancer treatment Yescarta.


Company: cnbc, Activity: cnbc, Date: 2019-10-25  Authors: peter schacknow, fred imbert
Keywords: news, cnbc, companies, intel, stocks, moves, wall, street, att, service, profit, uber, million, visa, share, estimates, making, reported, revenue, quarterly, premarket, verizon, biggest


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AT&T will give away its HBO Max streaming service for free to 10 million wireless customers

These are a portion of the customers that currently pay for an AT&T-owned product such as DirecTV or AT&T wireless phone service. As one of the final entries in the streaming wars, HBO Max faces a tough competitive landscape. Selling HBO Max by piggybacking off the entrenched HBO service has its own challenges. Stankey wants to convert HBO’s 35 million U.S. subscriber base, which includes the 10 million customers AT&T controls, to HBO Max. And while AT&T executives believe that HBO Max could red


These are a portion of the customers that currently pay for an AT&T-owned product such as DirecTV or AT&T wireless phone service.
As one of the final entries in the streaming wars, HBO Max faces a tough competitive landscape.
Selling HBO Max by piggybacking off the entrenched HBO service has its own challenges.
Stankey wants to convert HBO’s 35 million U.S. subscriber base, which includes the 10 million customers AT&T controls, to HBO Max.
And while AT&T executives believe that HBO Max could red
AT&T will give away its HBO Max streaming service for free to 10 million wireless customers Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-25
Keywords: news, cnbc, companies, streaming, wireless, free, service, att, million, customers, executives, away, hbo, disney, subscribers, max


AT&T will give away its HBO Max streaming service for free to 10 million wireless customers

Kit Harington and Emilia Clarke play Jon Snow and Queen Daenerys Targaryen during Season 8 of “Game of Thrones.”

In the bestselling novel “Circe” — optioned by WarnerMedia for its forthcoming HBO Max streaming service — the daughter of the Greek god Helios tames wild beasts and menaces the gods.

WarnerMedia executives want “Circe” to unleash a different power: attracting young viewers to the company’s belated entry in the streaming-video war.

HBO Max, which will be HBO plus movies, original shows, and TV classics such as “Friends,” will be available starting this spring to 10 million AT&T customers who are also HBO subscribers in the United States at no extra charge, according to AT&T Chief Operating Officer John Stankey, who disclosed the figures for the first time in an interview with Reuters.

These are a portion of the customers that currently pay for an AT&T-owned product such as DirecTV or AT&T wireless phone service.

By 2025, AT&T aims to reach about 80 million global subscribers, with about 50 million in the United States, a source briefed on the plans told Reuters. They are ambitious targets that would be consistent with Netflix’s early progress, and in the mid-range of Disney+, Disney’s Netflix rival, set to launch on Nov. 12.

WarnerMedia hopes this service will get a boost in 2021 when it launches an advertising-supported option at a lower cost, insiders said.

After it launches the ad-supported option, the company will add live programming on HBO Max.

A long-term goal for HBO Max is to help AT&T retain wireless subscribers, according to executives, and also allow the company to pair wireless and DirecTV satellite data to learn more about consumers — and in turn, charge higher rates to advertisers.

As one of the final entries in the streaming wars, HBO Max faces a tough competitive landscape. Although the Warner Brothers archive includes thousands of films and TV series like “The Shining” and “Scooby-Doo,” it does not have the same brand awareness as Disney properties like Pixar or Marvel.

Price could also be an obstacle: HBO Max is likely to cost slightly more than the $14.99 the company charges for HBO — significantly more than competing services from Apple ($4.99) and Disney ($6.99), and slightly higher than the standard $12.99 Netflix plan.

Selling HBO Max by piggybacking off the entrenched HBO service has its own challenges. Stankey wants to convert HBO’s 35 million U.S. subscriber base, which includes the 10 million customers AT&T controls, to HBO Max. Doing so involves renegotiating deals with current pay TV providers, who may be wary of helping AT&T snatch their video customers.

And while AT&T executives believe that HBO Max could reduce churn on its cell phone business to boost profits, the link may not be that clear.

“AT&T hasn’t seen any more improvement (in churn) with wireless/video bundling than Verizon has seen without it,” said MoffettNathanson analyst Craig Moffett.


Company: cnbc, Activity: cnbc, Date: 2019-10-25
Keywords: news, cnbc, companies, streaming, wireless, free, service, att, million, customers, executives, away, hbo, disney, subscribers, max


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AT&T, Elliott in talks after activist campaign launched: Sources

AT&T and Elliott Management are talking about issues the activist hedge fund raised last month when it pushed for change at the U.S. telecommunications and media conglomerate, two people familiar with the matter said on Thursday. Elliott is pressing the telecommunications giant to cut costs, make management changes and scale back expansion aspirations in one of its most ambitious investor campaigns to date. The meetings have taken place since shortly after Elliott, one of the world’s most powerf


AT&T and Elliott Management are talking about issues the activist hedge fund raised last month when it pushed for change at the U.S. telecommunications and media conglomerate, two people familiar with the matter said on Thursday.
Elliott is pressing the telecommunications giant to cut costs, make management changes and scale back expansion aspirations in one of its most ambitious investor campaigns to date.
The meetings have taken place since shortly after Elliott, one of the world’s most powerf
AT&T, Elliott in talks after activist campaign launched: Sources Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: tyler clifford
Keywords: news, cnbc, companies, letter, launched, management, company, elliott, changes, activist, talks, sources, att, sides, issues, campaign, billion


AT&T, Elliott in talks after activist campaign launched: Sources

AT&T and Elliott Management are talking about issues the activist hedge fund raised last month when it pushed for change at the U.S. telecommunications and media conglomerate, two people familiar with the matter said on Thursday.

Elliott is pressing the telecommunications giant to cut costs, make management changes and scale back expansion aspirations in one of its most ambitious investor campaigns to date.

The two sides have held discussions and there is dialogue, one of the sources said. The meetings have taken place since shortly after Elliott, one of the world’s most powerful activist investors, six weeks ago sent a four-part proposal for changes to AT&T. The fund says the changes could lift the share price by at least 60% by the end of 2021.

Traditionally, activist investors and management and directors at their target companies arrange meetings after proposals are made to see where there may be common ground.

The Wall Street Journal reported on Thursday that the two sides could reach a settlement as soon as this month but cautioned that talks could fall apart.

Elliott’s plan ranges from divesting certain businesses, eliminating $5 billion in costs, reviewing how it allocates capital and urging CEO Randall Stephenson, who has led the company since the financial crisis, to stop making acquisitions.

Spokesmen for AT&T and for Elliott declined to comment.

Elliott’s $3.2 billion stake in AT&T has morphed into one of the industry’s most ambitious campaigns in years not only because of AT&T’s size — it has a market capitalization of $270 billion — but also for the range of issues that Elliott says should be addressed. For Elliott, which has $38 billion in assets under management, this marks one of its biggest corporate targets.

AT&T last week announced plans to delay its earnings release, a move that has sparked speculation that the two sides wanted more time for talks to progress.

Earnings are now scheduled to be released on Oct. 28, one day before it plans to unveil its HBO Max streaming service at an event in Burbank, Calif.

Elliott took aim at AT&T’s $85 billion acquisition of media company TimeWarner Inc last year and the $49 billion purchase of satellite television provider DirecTV in 2015 in its letter. It also said that the company’s board needs directors with domain expertise and operating skills and that it has “identified several leading candidates” to discuss with the board. It did not ask for a specific number of seats on the board.

The letter struck a conciliatory note and Jesse Cohn, Elliott’s portfolio manager called AT&T CEO Stephenson the night before the letter was publicized to alert the company, suggesting that talks would begin quickly.

AT&T has said that it was already exploring some of the issues Elliott has raised.


Company: cnbc, Activity: cnbc, Date: 2019-10-18  Authors: tyler clifford
Keywords: news, cnbc, companies, letter, launched, management, company, elliott, changes, activist, talks, sources, att, sides, issues, campaign, billion


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Stocks making the biggest moves after hours: E-Trade, AT&T, Intuitive Surgical & more

The online brokerage firm posted earnings of $1.08 per share on revenue of $767 million, while Wall Street expected earnings of $1.01 per share and revenue of $743 million. The company’s shares are down more than 25% year to date and reports fourth-quarter earnings on Oct. 22. Intuitive Surgical shares jumped nearly 4% after the company announced better-than-expected earnings for its third quarter. The robotic surgical device company reported earnings of $3.43 per share, far exceeding analyst ex


The online brokerage firm posted earnings of $1.08 per share on revenue of $767 million, while Wall Street expected earnings of $1.01 per share and revenue of $743 million.
The company’s shares are down more than 25% year to date and reports fourth-quarter earnings on Oct. 22.
Intuitive Surgical shares jumped nearly 4% after the company announced better-than-expected earnings for its third quarter.
The robotic surgical device company reported earnings of $3.43 per share, far exceeding analyst ex
Stocks making the biggest moves after hours: E-Trade, AT&T, Intuitive Surgical & more Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: ganesh setty
Keywords: news, cnbc, companies, hours, cents, shares, company, wall, att, etrade, revenue, quarter, making, billion, million, biggest, surgical, share, intuitive, earnings, stocks, moves


Stocks making the biggest moves after hours: E-Trade, AT&T, Intuitive Surgical & more

Check out the companies making headlines after the bell:

Shares of E-Trade whipsawed during extended trade Thursday, initially climbing 4% before settling more than 1% below its closing price following the company’s third-quarter earnings beat. The online brokerage firm posted earnings of $1.08 per share on revenue of $767 million, while Wall Street expected earnings of $1.01 per share and revenue of $743 million.

Shares of TD Ameritrade similarly dipped 1% in extended trading. Immediately after the market close, shares first briefly rose. The company’s shares are down more than 25% year to date and reports fourth-quarter earnings on Oct. 22.

AT&T shares rose 1% following a Wall Street Journal report that the company is in talks with Elliott Management to resolve the activist hedge fund’s campaign for change at the telecom and media giant. Elliott took a $3.2 billion stake in AT&T in September and said the company could be worth at least $60 per share if it trimmed unneeded assets.

Intuitive Surgical shares jumped nearly 4% after the company announced better-than-expected earnings for its third quarter. The robotic surgical device company reported earnings of $3.43 per share, far exceeding analyst expectations of $2.99 per share. Revenue came in at $1.13 billion, compared to the $1.06 billion projected by analysts, according to Refinitiv.

Atlassian shares dropped 6% after the bell before rising 2% above its closing price when the company improved its second-quarter outlook and reported better-than-expected earnings for its first quarter. The Australia-based software company projects revenue in the second quarter between $386 million and $390 million and adjusted earnings of approximately 27 cents per share, compared to Wall Street’s forecast of $382 million in revenue and earnings of 26 cents per share, according to Refinitiv consensus estimates.

For its first quarter, Atlassian posted an EPS of 28 cents on revenue of $363 million, exceeding analysts’ expectations of 24 cents per share and revenue of $352 million, according to Refinitiv.


Company: cnbc, Activity: cnbc, Date: 2019-10-17  Authors: ganesh setty
Keywords: news, cnbc, companies, hours, cents, shares, company, wall, att, etrade, revenue, quarter, making, billion, million, biggest, surgical, share, intuitive, earnings, stocks, moves


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