According to AT&T’s (T - Free Report) technology vendor Synacor, the former's project to launch a mobile Internet portal in the fourth quarter of this year has been shelved. The new multi-platform Internet portal launch has likely been shifted to early 2017. Notably, AT&T and Synacor have been working on the portal to support the former’s range of new services like video and media streaming. Thus, the launch is of vital importance to the telecom giant as it plans to initiate its over-the-top online video streaming service ‘DirecTV Now’ soon.
Focus on Rich Media Content
AT&T has been gearing up for the launch of DirecTV Now by entering into agreements with content providers. The company also reached a merger agreement with Time Warner Inc. (TWX - Free Report) that is expected to its boost media content. Thus, by strengthening its video content, AT&T can generate digital advertising revenues through its video streaming apps.
The Bottom Line
While the launch of DirecTV Now bodes well for the company, AT&T has made a late entry into this space. The online video streaming service will thus face competition from incumbent leaders like Netflix Inc. (NFLX - Free Report) as well as from rival telecom operators like Verizon Communications Inc. (VZ - Free Report) . Also, a delay in its launch further is likely to hurt AT&T’s position in the market further as the service was scheduled for launch this year.
AT&T has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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