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Telecom Companies, Including AT&T and Verizon, Compete Fiercely Against Cable in the TV, Internet and Telephone Market, Business and Industry Trends Analysis

Broadcast, cable and satellite TV providers are competing by positioning themselves with value-added content and services, such as enhanced interactive TV, video on demand and expensive programming such as made-for-TV movies and exclusive major league sports coverage.
AT&T took a significant strategic step in mid-2015 by completing its acquisition of satellite TV firm DIRECTV for $48.5 billion.  In February 2021, the company agreed to sell 30% of its pay TV services (including Dish, U-Verse and AT&T TV) to TPG Capital, a private equity firm, for $1.8 billion.  Operations of the three services are now jointly run under a new company called DIRECTV.
Verizon is also investing heavily in the delivery of TV over its internet connections.  The firm offers a full menu of hundreds of TV channels (including HD channels) plus an on-demand library of thousands of movies.  The service, called Fios, also provides premium channel packages for additional fees, as well as single or multi-room DVR.  It provides subscribers with a very high-speed internet access service for speedy downloads.
The prospect of selling television subscriptions is a boon to telephone companies, since it gives them a highly coveted entertainment service to add to their phone service offerings.  They have the ability to bundle services that might include any or all of the following:  internet access, landline telephone, long-distance, VOIP telephony, cellular telephone and television—all on one discounted bill.  The major telephone service providers have been in a tough spot in the past few years, with revenues from landline customers declining as more consumers switch to cellular phones and VOIP as their standard methods of communication.  Delivering entertainment via the internet lines gives them a way to develop significant new revenues.


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