New York: AT&T Inc formally unveiled DirecTV Now, a live online video service for consumers who don’t want conventional pay TV, especially mobile-phone owners.
Starting on Wednesday, phone and tablet customers, along with owners of web-enabled TV sets, can get 60-plus channels for $35 a month, AT&T’s DirecTV division said in a statement. Additional options include an early sign-up offer of more than 100 channels for $35 monthly and more than 120 channels for $70.
The line-up includes major broadcast and cable outlets. Already the largest pay-TV provider in the US, Dallas-based AT&T is using the service to target more than 20 million consumers who don’t subscribe to satellite or cable TV, particularly the young. With a price tag starting at $35, DirecTV Now will appeal to viewers weighing similar services, such as Sling TV from Dish Network Corp and PlayStation Vue from Sony Corp.
It could also attract cable viewers who pay an average of $85 a month. “I think it is disruptive, both on price and programming,” said Roger Entner, an analyst with Recon Analytics.
DirecTV Now will be accessible through an app and available nationally, according to AT&T. Subscribers can get the service on mobile devices and also will be able to watch on web-enabled TVs or through media players from Apple Inc, Google and others. To sweeten the deal for AT&T wireless customers, DirecTV Now streaming won’t count against their data plans.
“The real differentiator will be that AT&T subscribers won’t use any of their data to access this,” said Avi Greengart, research director for consumer platforms and devices at Current Analysis.
Walt Disney Co., Time Warner Inc, 21st Century Fox Inc and Comcast Corp’s NBCUniversal all will have at least some channels on DirecTV Now. Consumers who want more than the basic packages can sign up for the premium services HBO and Cinemax for $5 a month.
Two channels that won’t be included immediately in DirecTV Now are CBS, the most widely watched TV network in the US, and Showtime, one of the most popular premium outlets. Both are owned by CBS Corp, which was the only major entertainment company not to reach a deal with AT&T for the service.
“The one big disappointment is not having CBS in there,” said Entner.
AT&T’s head of entertainment, John Stankey, said the company is optimistic it will sign CBS. It’s also working to sign up TV stations affiliated with the major networks, deals that will make local newscasts and other programming available.
Football fans may also be disappointed. DirecTV is home to the NFL Sunday Ticket, a premium pay-TV package that lets viewers see all out-of-market National Football League games each week. That service won’t be initially available on DirecTV Now, according to Stankey, who said the company is working on that.
AT&T needed a lower-priced online TV service to defend itself against cheaper, subscriber-robbing services like Netflix Inc, Amazon.com Inc and Hulu, as well as the new generation of multichannel streaming services.
AT&T has 25.3 million TV subscribers, and has lost 122,000 customers in the past year. If DirecTV Now is successful, the company plans to use the online format as its primary platform for new TV customers in the next three to five years. The phone giant recently struck a deal to buy Time Warner Inc for $85.4 billion, potentially gaining ownership of the Warner Bros. studio, HBO and Turner Broadcasting.
The debut of DirecTV Now pits AT&T against over-the-top internet TV competitors such as Dish’s Sling TV, which starts at $20 a month for about 30 channels. Sling has attracted 1 million customers since its start in February 2015, according to Parks Associates. Sony’s PlayStation Vue, which starts at $39.99 for more than 45 channels, didn’t make it into Parks’ top 10 biggest online services.
Hulu and Google’s YouTube are expected to launch live, multichannel web TV services early next year.
As part of the DirecTV Now debut, AT&T is promoting deals on hardware. New customers can get an Apple TV device with a three-month prepaid subscription. They can also opt for an Amazon Fire TV Stick with Alexa Voice Remote included with one-month prepaid DirecTV NOW package, the company said.
AT&T is also offering $5.99-a-month access to Fullscreen, a service with 1,500 hours of advertising-free TV shows, series and films licensed from various producers. The company will provide Fullscreen at no added cost to eligible new and existing wireless plans with messaging service.
The company also introduced a third service that’s ad-supported. FreeView is a free sampling of on-demand content from Audience Network, Otter Media properties and other channels on DirecTV Now.
