AT&T CEO Randall Stephenson is trying to convince the government that its merger with DirecTV would be beneficial for consumers. AT&T CEO Randall Stephenson testified before the House Judiciary Committee today to make the case that his proposed merger with DirecTV will be good for consumers.
?Customers are looking for bundles that combine pay TV and broadband,? said Stephenson in opening remarks, according to BGR.
This is a strange case to make. AT&T thinks that offering broadband and pay TV bundles are loved by consumers? In what I have seen with young professionals, they seem to prefer unbundling cable/TV options because they want to pay for just an Internet connection and Netflix.
According to a survey released from Harris Interactive last week, people between the ages of 18 and 36 are more likely to watch their favorite shows through online streaming services rather than pay TV.
Pay TV bundles are expensive compared to streaming services. Cable prices have increased by 6.5% throughout 2012 while expanded cable prices increased 5.1% during the same period. In fact, basic cable prices increased at more than 4 times the rate of information in 2012.
Stock Tag: AT&T Inc. (NYSE:T)