AT&T Inc. (NYSE:T) Threatening To Eat Netflix, Inc. (NASDAQ: NFLX)’s Lunch


AT&T Inc. (NYSE:T) is set to unveil a video service which will enable customers to watch videos everywhere. According to AT&T CEO, Randall Stephenson, the service will be much bigger meaning it might outperform Netflix, Inc. (NASDAQ:NFLX). Stephenson stated that most channels have a tendency to offer their own apps, but he envisions a single program that will enable customers to flip through channels as though they are using a TV guide. There would be no need to log subsequently into different app to watch different channels.

Most people are shifting their way of watching television. Most are currently huddled in phones and tablets as opposed to watching TV on big screens. This shift is what Netflix, and now AT&T are seeking to capitalize. Making massive content library is quite necessary when providing these services. With the acquisition of DirecTV by AT&T Inc. (NYSE:T), it has the potential to walk the talk.

After the acquisition of DirecTV, AT&T has been engaged in negotiating deals with key channels and content providers the like of CBS Corporation (NYSE:CBS)’s Showtime, Walt Disney Co (NYSE:DIS)’s ESPN and HBO. These negotiations are primarily aimed at securing ‘staking rights’- the ability to offer back catalog of hit shows e.g. The DailyShow while also provide a flexible manner of streaming them to your mobile devices.

Stephenson pointed out that, he does not think everybody is executing this concept very well. He pointed that Netflix had already done their best. This implies that Netflix has not yet reached the standards, which AT&T aims to achieve. What Stephenson might had implied is that they will offer diversity characterized with an abundance of programming as well as any live programming with through collaboration with providers.

Currently, Sling TV offers over the top service, which has live channels but lacks older shows and movies. Netflix has a few new shows or live content aside from its original programming, which is characterized by a large library of older content. AT&T seems to try to offer content, which works in both ways.

AT&T recently purchased back their unlimited data plan, which it had killed five years ago. This might be a hook to get people to sign for DirecTV or U-verse TV. This might be the first step in achieving their video content everywhere.