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AT&T’s DIRECTV Now Service Nears Launch

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DIRECTV Now priced at $35 per month

AT&T’s (T) DIRECTV Now OTT (over-the-top) is a new video streaming service that will feature more than 100 channels and will be launched in November 2016. AT&T has announced the retail price for DIRECTV Now at $35 per month, which means that AT&T should be able to penetrate this market along with Verizon’s (VZ) OTT offering, Go90.

This move could help AT&T further diversify beyond its US wireless business, as video streaming is a fast-growing space. The major players in the video streaming market are currently Netflix (NFLX), DISH Network’s (DISH) Sling TV, and Sony’s (SNE) PlayStation Vue.

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AT&T’s pricing compared to its peers

Netflix’s plans average around $10 per month, and Hulu’s online television service is expected to cost $35 per month. DISH offers 30 channels of streaming TV on its Sling TV service for $20 per month. Sony offers more than 50 channels of streaming TV on its PlayStation Vue service for $30 per month.

Netflix admitted at the Goldman Sachs Communacopia Conference last month that while it was underpriced compared to its peers, it believes this underpricing has been “balanced to some degree in terms of the price,” helping consumers stay “anchored on Netflix.”

In the next part of this series, we’ll look at AT&T’s US pay-TV subscribers net gains and losses.

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