Today at the MoffettNathanson Media & Communications Summit AT&T CEO John Donovan announced they plan to release a streaming-only version of their DIRECTV satellite service. Now, this won’t be DIRECTV NOW but almost a one for one copy of DIRECTV streaming online.
So why make this move well it is far cheaper to add a new streaming customer vs a traditional pay-TV customer. “We won’t roll a truck, Donovan said. “The CPE will be cheaper, it will be a thinner, lighter version and wE will have lower operating costs. We anticipate passing a lot of those cost savings.”
“It will extend our footprint,” Donovan said. “It will not only have a lower price point, but it will have margins that are similar and therefore better returns because there will be less upfront costs.
Now exactly what this service will cost is unknown but it would likely mean that there would at least be no set-top box fees if you use your Roku for example.
For months now AT&T has said they are merging their DIRECTV and DIRECTV NOW on the back end. It is very likely this new DIRECTV streaming service will just be the DIRECTV NOW beta service but without the NOW on the name.
This also lines up well with the recent $15 AT&T Watch service AT&T plans to launch.
Source; MultiChannel News
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