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AT&T Inc. (T) - free report >>
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AT&T Strengthens its DIRECTV Now Portfolio, Adds HBO
Telecom and pay-TV behemoth, AT&T Inc. ((T - Free Report) ), has inked a deal with HBO that will enable it to deliver Time Warner Inc. -owned HBO’s content across multiple platforms through satellite, online streaming and cable-based U-verse. Notably, AT&T is launching its online streaming service Over The Top (OTT) DIRECTV Now by the end of this year owing to the gaining popularity of the business model across the millennial population.
On Expansion Mode
AT&T has been striving to procure multiple premium content for the upcoming launch of its OTT service. Earlier this year, it inked two deals – one with Cinemax and the other with The Walt Disney Company (DIS) which includes the renowned sports network ESPN – to diversify its channel portfolio. Going forward, AT&T will add more content providers for its upcoming DIRECTV Now platform.
The Bottom Line
The online streaming service is gaining momentum as is evident from the growing success of companies like Netflix Inc. (NFLX - Free Report) , which is a leading player in this segment. This has resulted in massive subscriber losses for the pay-TV operators. To counteract the churn rate, many pay-TV operators are implementing this model and AT&T is no exception. We believe that the addition of HBO’s content, which features immensely popular TV series like Game of Thrones, will help the company gain subscribers in its new platform. However, AT&T is a late entrant in this industry and it remains to be seen whether it can compete against the already established players in this segment.
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