AT&T’s new streaming service
AT&T (T) is planning to introduce a new direct-to-consumer streaming video service under WarnerMedia in the fourth quarter of 2019. It has the potential to be a direct competitor to Amazon’s Prime Video, Netflix (NFLX), and Walt Disney Company’s (DIS) forthcoming streaming service. Such a plan could expand AT&T’s existing portfolio of video streaming services that already includes WatchTV and DIRECTV NOW.
Global market for SVOD
Based on Future Market Insights report, the global market for subscription video-on-demand (or SVOD) services such as Netflix and AT&T’s DIRECTV NOW is growing steadily. By the end of 2026, the research firm predicts that the global SVOD market could be worth $108.6 billion, up from $48.9 billion in 2015, as depicted in the chart above.
Hulu and Dish Network (DISH) are the other companies competing for this revenue opportunity. Dish’s Sling TV service had 2.3 million subscribers on June 30, putting it ahead of AT&T’s DIRECTV NOW service with 1.8 million subscribers. Netflix has 57.4 million subscribers in the United States.