AT&T Cuts the Cord, Reveals OTT Video Plans

Following in the footsteps of Verizon and Sling TV, AT&T announced today that it will launch three new over-the-top video service offerings later this year. These include a DirecTV Now product, available as an app and delivering much of the same content available through DirecTV today; DirecTV Mobile, which will offer a combination of "premium video and made-for-digital content" available again through an app; and DirecTV Preview, a free ad-supported service that will include some existing DirecTV content and video from other online sources including Otter Media, AT&T's joint venture organization run in partnership with The Chernin Group.

AT&T Inc. (NYSE: T) has so far not revealed any details on pricing for the paid OTT offerings, but it has clearly emphasized the fact that all OTT services will be available to anyone and everyone, regardless of broadband provider. AT&T expects to launch the new OTT services in the fourth quarter.

For access to the full press release, see: AT&T Intros New OTT Video Services.

For more on TV market trends, check out our dedicated video services content channel here on Light Reading.

Many in the industry questioned AT&T's decision to buy a satellite TV company when it acquired DirecTV given the market trend toward IP video. However, it's clear that DirecTV's satellite infrastructure was only part of the company's appeal. Given today's OTT announcement, AT&T plans to use both the larger scale it now has with DirecTV, and its access to cheaper content licensing agreements, to take its video services to a wider, Internet-connected audience. (See AT&T Winds Down U-verse TV Era.)

— Mari Silbey, Senior Editor, Cable/Video, Light Reading

kq4ym 3/11/2016 | 11:11:39 AM
Re: Beats Verizon to the Punch I've given up calbe and satellite after decades of subscribing. But, now take all my enterainment free from a Roku box. It  will be interesting to see what AT&T comes up with on it's OTT offerings and apps. Broadening out it's service offerings probably makes sense, at least for checking out what's going to fly well or not in the video marketplace.
KBode 3/3/2016 | 4:06:12 PM
Re: Beats Verizon to the Punch I think it makes sense if AT&T's willing to compete on price, but I'm just not sure that's in the company's corporate DNA. Offer a product that's truly compelling and you cannibalize your existing legacy pay TV customers, the same dillema that has ensures the majority of these efforts get hamstrung by nervous ISP executives:


If AT&T designs a good product and prices it to move, it will succeed. I just have my doubts. AT&T's not known for seeking out bare-fisted competition. 
danielcawrey 3/2/2016 | 7:08:41 PM
Re: Beats Verizon to the Punch This makes a ton of sense. I don't personally subscribe to cable TV, but I have checked out Sling TV. It's a good idea, and competition in this market is only going to create a better (and cheaper) product for consumers. 
Stillgridlocked 3/1/2016 | 9:27:39 PM
Beats Verizon to the Punch I thought Verizon would hit the pavement first on OTT but AT&T is being far more aggressive than Verizon with their Directv purchase and now this.

Will be curious to see how competitive the pricing is as this could always be a meh service price wise.
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