On Wednesday, AT&T announced that they will start offering a new service to compete with Netflix next year. The new service plan will feature HBO as the leading content. At the moment, the company is already offering streaming services like DIRECTV Now, HBO Go, and HBO Now.
DIRECTV Now is designed for people who prefer streaming TV on their mobile devices. It is a great option for people who want to find an alternative to cable TV. HBO GO which requires a cable login allows you to watch TV shows on devices like phone, tablet, and computer. HBO Now is a standalone platform dedicated to broadcast HBO shows. Besides, AT&T also has a streaming service that specializes in offering DC Comics show. This plan costs only $7.99/month.
John Stankey said that Warner Media will provide lots of additional contents along with third party content at the New Establishment Summit in Vanity Fair on Wednesday. The decision comes after Dallas based AT&T had acquired Time Warner for $109 billion. He continued to say that they have lots of loyal customers who are interested in their content. Stankey hopes that they will launch a compelling product that can help them to increase their customer base.
Stankey said the reason why they introduce the new service plan is because they want to offer something that will give customers more time of engagement. He thought about what he can do to make the brand unique and resolved that the solution is to provide more interesting entertainment that will increase the customer engagement.
Ever since AT&T has taken over Time Warner, Stankey has been doing his best to improve HBO content. He wants AT&T to offer entertainment products that are as high quality as Netflix. HBO puts a lot more emphasis on quality instead of the quantity of movies. On the other hand, Netflix has more movies and shows to offer. Stankey now hope that HBO can offer just as many shows as Netflix.
Warner Media did not state what property it will include in the new service plan. Warner Media is the owner of movie franchises like Batman. It also has shows that aired on big networks like CNN, TNT, and TBS. The new service plan will include shows from the Cartoon Network. The plan is only available with the HBO included. Customers can also purchase the HBO separately.
The price will be more expensive than HBO which is priced at $14.99. Stankey said that it will be given a compelling price point due to the highly competitive fields. The price will only announced when close to the launch date next year. The plan on launching the new service plan was telegraphed at a New York Investor road show last month. The telegraph was sent by AT&T chief executive officer (CEO), Randall Stephenson. AT&T plans on launching the service in the 4th quarter of 2019. The launching of the new service will put AT&T in competition against other rivals such as Netflix, CBS All Access, YouTube Premium, Hulu and Amazon.