CEO Randall Stephenson shared a vital piece of information about AT&T’s latest streaming service at the WSJDLive Conference. The service, DirecTV Now, will be available to the customers by the end of November, and Stephenson confirmed that DirecTV Now subscribers will be able to access more than a hundred channels at a comparatively low cost of $35 per month. He further added, “And that includes your mobile streaming cost.”
Stephenson also said that the streaming package from DirecTV Now would include programming from NBCUniversal, Fox, and Time Warner. He added, “This isn’t the junk that nobody wants it has all of the premium content you know and love and like to watch.” However, many analysts are shocked with this announcement, as they had expected a far greater price for the latest streaming service from AT&T.
AT&T signed carriage agreements with many major networks over the past few months, in order to acquire the rights to broadcast their contents on DirecTV Now. The addition of these major networks made analysts assume that the prices for this online streaming service might be a bit higher, around 50-55 dollars a month.
Nonetheless, AT&T CEO’s announcement has thwarted all the speculations. Stephenson said that DirecTV Now subscribers would not have to face any additional costs on installations, technicians, set top box, or satellite dish. He said, “That’s a radical concept. That’s how costs go down dramatically.”
AT&T had been planning to develop an online streaming platform for the last three years. However, they had to put the plan on hold as they failed to “get the media companies to participate” until the acquisition of DirecTV, which happened last year.
Stephenson confirmed that DirecTV Now would target the 20 million households, who have abandoned their pay TV service in the last few years. Furthermore, he also commented that AT&T has several other plans to shake up the market and said, “We’re going to touch these third rails that the [pay TV] industry will not and has not touched. How can you bring à la carte pricing into the ecosystem?”
AT&T CEO also assured the subscribers that the recent deal between them and Time Warner would not force the company to raise the prices for DirecTV Now.