Advertisement
UK markets close in 7 hours 37 minutes

  • FTSE 100

    8,127.13
    +48.27 (+0.60%)
     

  • FTSE 250

    19,740.51
    +138.53 (+0.71%)
     

  • AIM

    755.66
    +2.54 (+0.34%)
     

  • GBP/EUR

    1.1658
    +0.0001 (+0.01%)
     

  • GBP/USD

    1.2511
    +0.0000 (+0.00%)
     

  • Bitcoin GBP

    51,418.61
    +216.51 (+0.42%)
     

  • CMC Crypto 200

    1,387.60
    -8.93 (-0.64%)
     

  • S&P 500

    5,048.42
    -23.21 (-0.46%)
     

  • DOW

    38,085.80
    -375.12 (-0.98%)
     

  • CRUDE OIL

    84.03
    +0.46 (+0.55%)
     

  • GOLD FUTURES

    2,357.20
    +14.70 (+0.63%)
     

  • NIKKEI 225

    37,934.76
    +306.28 (+0.81%)
     

  • HANG SENG

    17,651.31
    +366.77 (+2.12%)
     

  • DAX

    18,013.69
    +96.41 (+0.54%)
     

  • CAC 40

    8,039.75
    +23.10 (+0.29%)
     
PROPERTY:

9 luxury homes to consider if money is no object

Ever thought about what a multimillion pound budget would buy you?

AT&T Plans OTT Service DIRECTV Now Launch Before 2017

Zacks Equity Research
Updated

Telecom and pay-TV behemoth AT&T Inc. T is gearing up for the launch of its online streaming service over the top (OTT) DIRECTV Now by the end of 2016. By foraying into the OTT space, the company has joined the likes of Dish Network Corp. DISH and Sony in offering OTT services such as Sling TV and Playstation Vue, respectively. The customers of DIRECTV can access the service on their mobile devices through a DIRECTV app.

Notably, AT&T has been strengthening its DIRECTV Now portfolio by entering into agreements with content providers. Recently, the company inked a deal with HBO that will enable the former to deliver Time Warner Inc. TWX-owned HBO’s content across multiple platforms.

Benefits for AT&T

The online streaming service is gaining momentum which is evident from the growing success of companies like Netflix Inc. NFLX, which is a leading player in this space. This has resulted in massive subscriber losses for the pay-TV operators. To put a check on customer churn, many pay-TV operators are adopting this model and AT&T is not an exception. Moreover, since AT&T operates its own wireless network, the company can price its DIRECTV Now offering by bundling wireless data packages with the OTT service. This will help draw new wireless customers. Additionally, with the advent of a streaming app, AT&T can generate revenues from mobile advertising – a fast growing industry.

ADVERTISEMENT

The Bottom Line

AT&T’s DIRECTV Now can prove to be a major revenue driver for the company in the coming years. However, aggressive pricing related to non applicability of data caps for the DIRECTV service in wireless plans may be subjected to net neutrality scrutiny.

AT&T INC Price

 

AT&T INC Price | AT&T INC Quote

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
TIME WARNER INC (TWX): Free Stock Analysis Report
 
NETFLIX INC (NFLX): Free Stock Analysis Report
 
AT&T INC (T): Free Stock Analysis Report
 
DISH NETWORK CP (DISH): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research