DirecTV Now looks like it will be going for $35 a month when it launches, according to what AT&T CEO Randall Stephenson said on Tuesday at the WSJ.D conference hosted by The Wall Street Journal. The live event also was streamed on Facebook. AT&T reportedly will offer more than 100 channels with the new OTT streaming service that is slated to kick off toward the end of next month.
Specifics were a bit slim on exactly what the $35 will get customers, or what kind of stipulations might exist around that price. However, AT&T was touting that the content will be solid, and the kind of stuff consumers actually will watch.
“This isn’t the junk that nobody wants,” Stephenson says in reference to the channels that will be offered − but he did not name specifics other than it would include programming from NBCUniversal, Time Warner and Fox.
The price tag of $35 price is generally lower than analysts had guessed at for DirecTV Now. Since the streaming service would not require a dish, a technician install or a set-top, Stephenson says that keeps costs down.
In a research note on Wednesday, MoffettNathanson called the price a dramatic departure from expectations of a “fat” OTT bundle. Given the estimated costs for channels expected to be included in the offering, the research firm estimates the margin for AT&T could be as low as $1 before the inclusion of customer service, transport, computing and storage costs.
More on this story is available here in our sister publication, Wireless Week.