AT&T hopes to combat Netflix
AT&T announced on Thursday that they have created their own streaming service, WatchTV, through which consumers can stream CNN, TNT, and other channels.
The streaming service is the first revealed project after the massive AT&T-Warner deal that closed two weeks ago. WatchTV will help the merged companies position itself against Netflix, which dominates the market and posts a net worth more than both companies.
To start, AT&T will offer the service through its unlimited wireless phone plans for free. After evaluating its performance, it will likely unravel it as its own service that anyone can buy for just $15 a month. Moreover, AT&T currently offers DirecTV for $35 a month, so this is a much more attractive option for younger viewers that don’t wish to spend that much money. The main feature that separates the two is the access of sports channels, which WatchTV will not have.
Plus, not only will WatchTV include 30 live channels that AT&T owns, but it will also include channels that it doesn’t own such as BBC. According to the company, the streaming service will have over 15,000 TV shows and movies for the viewers’ choosing.
However, investors did not seem impressed on Thursday, as the stock value of AT&T (T) dropped roughly 1.5%. Likely, this is because investors realize that although this represents a good first step for AT&T in combatting Netflix and Amazon, they will need to do much more to gain market share, especially considering Netflix is just $10 a month.
Nevertheless, this project reveal represents the first of many to come for the newly merged media giant. It will be exciting to see what other developments the company can produce as they continue to grow.
Featured image via Wikimedia Commons
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