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Will DirecTV, Bundling Strategy Come To AT&T’s Rescue?

ATT (T) is expected to ramp up consumer advertising for bundled wireless and pay-TV offers in the wake of disappointing first-quarter results at satellite broadcaster DirecTV.

ATT on Tuesday did not disclose March-quarter subscriber additions for the new DirecTV Now video streaming service, launched in November. Subscriber growth at DirecTV Now’s streaming service, however, helped ATT offset surprising weakness at DirecTV’s traditional pay-TV business in the first quarter, analysts say.

“ATT plans to more aggressively market DirecTV Now in Q2 as well as the unlimited wireless-video bundle,” said Mike McCormack, analyst at Jefferies.

The telecom giant acquired DirecTV Group for $49 billion in July 2015. The satellite-TV broadcaster’s free cash flow has supported ATT’s dividend payments, but ATT also expected marketing synergies from the acquisition.

Craig Moffett, analyst at MoffettNathanson, said in a report on Tuesday: “DirecTV’s subscriber growth is holding up reasonably well, but only when one includes subscribers being added by their

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