AT&T Inc. set a price of $35 a month for a new online-streaming TV service with 100 channels or more, and the company may experiment with “a la carte” programming, giving customers choice on what channels they pay to watch.
Dubbed “DirecTV Now,” The move is aimed at leveraging Time Warner’s massive content library as well as its TV channels:
“Our intent is to bring Time Warner and AT&T together” to create a “new and different competitor,” AT&T Chief Executive Officer Randall Stephenson said at a Wall Street Journal conference Tuesday in Laguna Beach, California.
The new offering will compete with other upstart streaming TV services like Sony’s PlayStation Vue and Dish Network’s Sling TV. Vue’s pricing model is $39.99 per month for 60 channels, with plans running up to $54.99 for over 100 channels. Sling TV, meanwhile, starts at $20 per month for just 28 channels, and goes as high as $40 per month for 48 channels that can be viewed on multiple screens.
Starting at just $35, DirecTV Now is competitively priced and promises to shake up the suddenly crowded streaming-only TV space. The new offerings will also no doubt put additional pressure on cable operators, which have struggled to attract new subscribers amid a wave of “cord-cutting” in recent years.
AT&T is clearly intent on quickly seeing gains from its mega-merger with Time Warner, which isn’t a surprise, considering its massive $85 billion price tag.
AT&T shares fell $0.27 (-0.74%) to $36.43 in premarket trading Wednesday. Year-to-date, T has gained 6.66%.