AT&T is growing its line of video streaming offerings with a new skinny bundle of live TV channels, according to statements from AT&T CEO Randall Stephenson. This story was delivered to Business Insider Intelligence Apps and Platforms Briefing subscribers hours before appearing on Business Insider. To be the first to know, please click here.
AT&T is growing its line of video streaming offerings with a new skinny bundle of live TV channels, according to statements from AT&T CEO Randall Stephenson. The new offering, called AT&T Watch, will cost $15 a month for general consumers but will be free for AT&T Wireless subscribers.
Details around exact rollout date and which channels will be included have yet to be announced, but it’s been reported that sports will not be part of the service. Stephenson first mentioned the new service while testifying in the ongoing antitrust case around AT&T’s proposed acquisition of Time Warner. One of the key components AT&T will have to prove to win the case is that its ownership of Time Warner won’t hurt pay-TV competition.
AT&T Watch is just the most recent streaming product from the company, and the third major digital content lure the No. 2 wireless carrier has aimed at wireless subscribers.AT&T rolled out free HBO access for subscribers of its Unlimited Plus plan in April 2017, and opened up the offering to subscribers of its second-tier Unlimited Choice plan in September 2017. AT&T also offers its unlimited subscribers a discount for its DirecTV Now service.
The addition of AT&T Watch would make AT&T Wireless one of the most video-package-heavy carriers in the US mobile market. While AT&T isn’t alone in its digital content endeavors, its DirecTV acquisition has enabled it to offer a wider range of high-demand video content to its wireless subscribers. Here’s how its major competitors are approaching digital content:
Verizon offers one year of free Netflix to subscribers of its FiOS Triple Play Package and is expected to launch a new OTT service this year. The telecom is exploring new content partnerships after Go90, its free digital video streaming app that launched in 2015, failed to meet expectations. It’s reported that a new OTT service from Verizon would leverage standard content from Oath and premium content from third parties. The new service is expected to launch sometime this year.
T-Mobile started offering free Netflix to most of its subscribers when it launched the Netflix On Us program in September 2017. The program covers Netflix’s $9.99 subscription cost for subscribers on any of its family plans.
Sprint started offering free Hulu to its unlimited subscribers in November 2017.The carrier also offers Sprint TV, which lets consumers access television channels for free. Sprint TV subscribers can also upgrade to premium channels for $10 a month.
Digital content streaming add-ons from wireless providers could be effective in helping carriers retain their own subscribers, but are unlikely to help them win over subscribers from other carriers. According to exclusive data from Business Insider Intelligence’s Digital Telecom Consumer survey (enterprise subscribers only), consumers don’t view free content as a must-have offering from their mobile carrier, and 88% said they don’t consider it important at all.
Laurie Beaver, research analyst for Business Insider Intelligence, Business Insider’s premium research service, has written a detailed report on the mobile carrier landscape that:
Describes how the US wireless carrier is shaping up.
Explores the effect of the fierce pricing wars taking place, and the methods carriers are using to retain their subscribers.
Highlights the new technology carriers are using to drive growth and revenue.
Looks at the potential barriers that could limit carriers’ growth and examines who’s best positioned to come out on top.
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Tech: AT&T to launch new streaming service (T)
