DirecTV has been operating in a harsh new reality that many of its telecom industry competitors also face.
Over the past few years, many consumers have been rapidly ditching cable services (which have gradually become more expensive) for streaming platforms to save money.
A recent survey from Pew Research Center found that 83% of Americans use streaming platforms such as Netflix and Amazon Prime Video to watch movies and TV shows, while only 36% are subscribed to cable or satellite TV services.
Amid this growing trend, which gained traction around 2010, DirecTV hasn’t provided consistent updates about how many customers it loses each quarter. However, a report from MoffettNathanson, which CSI Magazine obtained, revealed that cable providers lost 1.03 million subscribers during the second quarter of 2024. Satellite services, such as Dish and DirecTV, collectively lost 495,000 TV customers.
As DirecTV loses customers, it has quietly reduced its satellite TV services and focused on developing its streaming business.
Image source: Fallon/Bloomberg via Getty Images
DirecTV to soon make risky change to streaming devices
In 2023, DirecTV launched its Gemini devices, which allow customers to watch live TV and access streaming apps through a single device.
Over the past few months, DirecTV has added new features to these devices. For example, in August, it began offering a multi-channel viewing feature, allowing Gemini users to watch four live channels simultaneously.
Now, DirecTV will soon add custom screensavers for these devices. However, what’s uncanny about this move is that the screensavers are created by artificial intelligence. They allow Gemini users to insert themselves into the on-screen images, which contain items such as clothing or furniture that they can shop for.
DirecTV has partnered with Glance, a consumer AI company, to add these sceensavers to Gemini devices by early 2026.
Related: Spectrum launches bold new offer as cable TV customers flee
Once the change rolls out, Glance’s AI wallpapers will appear when a Gemini device is left idle for 10 minutes, according to a recent report from The Verge.
It will then display several images into which users can insert themselves by scanning a QR code on their TV screen. Users will then be instructed to download the Glance mobile app to upload their own personal image.
Users can insert themselves into a 30-second AI-generated video by selecting the “craft my moment” feature. To customize an image or video on their TV screen, users can even talk into their Gemini TV remote and ask the AI tech to change the color or style of clothing it puts them in.
“With Glance AI, TV screensavers become a smart content discovery, personalization, and AI-commerce experience,” said DirecTV Senior Vice President of Product Marketing Vikash Sharma in a press release. “DIRECTV audiences who stream TV through our Gemini devices will now get the opportunity to reimagine their interactions with their TV screen, with personalized content, entertainment, news, and shopping recommendations in real time.”
Many consumers are worried about AI-generated ads
DirecTV’s decision to introduce AI-generated ads to its Gemini devices may rub some of its customers the wrong way. A recent survey from Washington State University’s Carson College of Business found that only 37% of Americans are generally comfortable with AI being used in marketing.
A massive 94% are worried about AI in marketing for several reasons, such as the technology possibly containing misleading or deceptive AI-generated content, increased job loss due to AI replacing human roles, and the potential for privacy violations and data misuse.
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“As AI technologies continue to evolve and become more widely adopted across industries, it’s crucial for marketers to gauge how their audiences perceive these tools,” said Andrew Perkins, professor of marketing at the WSU Carson College of Business, in a press release. “While AI offers exciting possibilities for personalization and efficiency, businesses must be mindful of potential consumer hesitations. By understanding and addressing these perceptions early, companies can leverage AI responsibly and effectively, avoiding pitfalls that arise from overlooking customer concerns.”
DirecTV recently angered customers with price hikes
Making customers uncomfortable is the last thing DirecTV needs. It recently received backlash for raising the prices of its satellite and streaming services, which impacted new and existing customers.
Some customers even threatened to cut ties with the company for its latest round of price hikes.
On Oct. 5, the monthly price of DirecTV’s Choice plan, its second-cheapest satellite TV package, increased by $9, while its Ultimate plan went up by a whopping $11.
For DirecTV Stream customers with the Movie Extra Pack add-on, their monthly bills spiked by $5. The Peacock Premium or MGM+ subscription add-ons also increased by $3 or $1, respectively.
Related: Comcast takes drastic action as customers rapidly cut service
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