CenturyLink Inc. (CTL - Free Report) is considering working with other established OTT (over the top) provider with a desire to offer its customer flexibility in how they want to watch the videos.
In fact, besides offering customers multiple video options, the company is also planning to earn revenues through reseller deals with OTT companies like Netflix, Inc. (NFLX - Free Report) for selling services like Hulu to their subscribers.
Already, CenturyLink is reselling AT&T Inc.’s (T - Free Report) DirecTV Now satellite services, to its customers in the markets where its own Prism TV services are not present.
In late June, the company unveiled its over the top (OTT) TV service, which is a beta version of the Virtual Multichannel Video Programming Distributor (V-MVPD) service called CenturyLink Stream.
Notably, CenturyLink Stream is supported on Roku OTT devices as well as iOS and Android mobile devices. Also it is playable on the CenturyLink player, an Android TV-powered device, manufactured by LG Electronics.
The company’s OTT TV service for $45 per month has a cloud DVR that can store up to 50 hours of HD programming. It also features a broad mix of add-on programming packages And includes almost 50 channels like NBC, ABC, USA, Disney Channel, ESPN, Freeform, Bravo, Food Network, ESPN, A&E, HGTV, Travel, and History.
Going forward, the company plans to focus on the OTT service so that it can cut content acquisition costs and simplify the customer installation process. In fact, the urge to boost its broadband subscriber base while arresting the churn rate in this segment is CenturyLink’s another motive behind the service.
CenturyLink’s shares have decreased 10.7% in the last three months against the industry’s growth of 1.6 %.
Stocks to Consider
This leading regional telecom service provider, currently carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
If you are still interested in the broader Computer and Technology sector, you may also consider Arista Networks, Inc. (ANET - Free Report) , which is a better-ranked stock from the space. The company currently sports a Zacks Rank #1, and might prove to be a better choice at the moment.
One Simple Trading Idea
Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.
This proven stock-picking system is grounded on a single big idea that can be fortune shaping and life changing. You can apply it to your portfolio starting today.
Learn more >>