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Leveraging its acquisition of DirecTV, AT&T ( T ) announced today that it will roll out a national Internet-video service by year-end, a national video-streaming service tailored for mobile phone users, and a Web offering targeting millennials. AT&T says the “DirecTV Now,” “DirecTV Mobile” and “DirecTV Preview” products will be available in the fourth quarter. While Verizon Communications ( VZ ) has launched an ad-supported mobile video service, Go90, and Dish Networks ’ ( DISH ) “Sling” streaming service has some 500,000 subscribers, AT&T aims to set itself apart from rivals with a broad range of video offerings. AT&T surpassed Comcast ( CMCSA ) as the biggest pay-TV provider with the DirecTV purchase, which closed in July. AT&T had 25.4 million U.S. video subscribers as of Dec. 31 — 5.6 million fixed-line U-verse customers and 19.8 million satellite TV subscribers. AT&T has negotiated with content companies for digital streaming rights. AT&T says there will be limits on how many people can log onto the services via smartphones, tablets, smart TVs, PCs or other devices. It says consumers will have options to buy premium content for its online, or over-the-top, video services. “Having the largest number of pay-TV subs in the U.S. gives AT&T the scale it needs to compete in the OTT market, enabling it to acquire mobile and out-of-home rights,” said UBS analyst John Hodulik in a research report. “The ability to sell pay-TV subscriptions nationally is one of the keys to AT&T’s segmented mobile-video strategy.” AT&T in January announced a wireless product with unlimited data, but only for new or existing subscribers at DirecTV or its U-verse landline business in 22 states. AT&T did not say in its announcement today how many channels would be included in the new video-streaming products. “These new video subscription models reflect the flexible content choices, viewing options and simple, transparent pricing that consumers want,” John Stankey, CEO of AT&T Entertainment Group, said in the company’s news release. AT&T says its “DirecTV Now” product will be available via fixed-line broadband from any Internet service provider or AT&T’s wireless network, when bundled with a wireless plan. “Bundling OTT video with wireless should provide the stickiness that is missing from stand-alone OTT services,” said Hodulik. DirecTV Now will include on-demand and live programming as well as premium add-on options. The less expensive “DirecTV Mobile” package will be accessible from any wireless service provider. Some short-form content will be tailored for mobile devices. The ad-supported “DirecTV Preview” service will feature content for millennials, including video from Otter Media, a joint venture of AT&T and the Chernin Group. Verizon’s Go90 mobile video service is available as an app for any wireless network. Dish Network’s Sling is included in T-Mobile US ’ ( TMUS ) “Binge On” service, in which video does not count toward monthly data caps. Image provided by Shutterstock . Scalper1 News
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