AT&T's rumored DirecTV Now service is all set to launch next month and it will be attractively priced, the company officially announced.
The upcoming online video streaming service will cost just $35 per month, which will include mobile streaming costs. AT&T CEO Randall Stephenson said the upcoming DirecTV Now targets customers who don't want pay-TV subscriptions.
AT&T's DirecTV Now will launch in November with more than 100 channels, aiming to offer customers a cheaper alternative to cable television. Moreover, Stephenson said that DirecTV is just the beginning, but AT&T has bigger plans to disrupt the cable TV market.
The latest DirecTV Now announcement follows AT&T's news that it entered an agreement to buy Time Warner for $85.4 billion. AT&T wants to make the acquisition in a bid to boost content and establish itself on the media and entertainment market, but it's already facing opposition.
Presidential candidate Donald Trump, for instance, recently said he would block the AT&T-Time Warner deal if he becomes the president of the United States, as this merger would give AT&T too much power.
DirectTV Now may be able to fend off some of that negativity and opposition that AT&T is currently facing in relation to its proposed Time Warner acquisition. Stephenson points out that DirecTV Now wouldn't have been possible without the DirecTV deal and, should the agreement pass regulatory scrutiny and go through, Time Warner's content will be added to AT&T's service.
Even if the deal doesn't hold, DirecTV Now still makes an attractive proposition that could disrupt the market.
"Thirty-five dollars, you don't find that for a hundred channels in the marketplace, with wireless streaming," adds Stephenson.
AT&T bought DirecTV back in 2015 and became the largest pay-TV operator in the United States, racking up 25.3 million video subscribers. The company is banking on mobile video as new sources of revenue since the U.S. wireless market is in a slump, and DirecTV Now and Time Warner content could go a long way toward achieving its goals.
We're rapidly shifting toward online video consumption in the detriment of cable and satellite television services and AT&T wants to bet big on the trend, but it's entering a pretty crowded market.
Sling TV offers roughly two dozen channels for just $20 per month, Sony's PlayStation Vue charges $55 per month for more than 100 channels, and more options will soon hit the scene. Hulu is also planning to launch a live TV bundle early next year, combining both broadcast and cable network channels.