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How the Time Warner Purchase Benefits AT&T’s Wireless Customers

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AT&T WatchTV

After the announcement of the completion of AT&T’s (T) acquisition of Time Warner on June 14, the leading wireless service provider launched a new streaming service called AT&T WatchTV, according to CNBC. Initially, the AT&T WatchTV bundle is expected to show free television programming, excluding sports content.

AT&T to offer free streaming service

AT&T holds the second-largest position among the wireless carrier companies after Verizon (VZ) and is also a leading provider of bundled services. AT&T’s WatchTV streaming service is expected to be available for free for AT&T wireless customers. This means that AT&T customers who have unlimited data plans would be able to get free streaming service. For wireless carriers such as Verizon, Sprint, T-Mobile (TMUS), or any other company, the AT&T WatchTV streaming service is available for $15 per month.

The live TV streaming service is expected to generate revenues from advertising. AT&T is focusing on ramping up its advertising platform. It’s looking to acquire AppNexus and the remaining stake in the joint venture Otter Media.

Such acquisitions are expected to enable targeted ad business and help the company compete with digital rivals like Netflix (NFLX) and Amazon (AMZN). Netflix and Amazon have been disrupting the media landscape by delivering original programming directly to users via their online services.

Amid the growing popularity of online streaming options, AT&T launched an over-the-top (or OTT) video streaming service, DIRECTV NOW. Since the acquisition of DIRECTV in 2015, the telecom company is focusing on bundling its wireless and video services to attract and retain customers.

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