By the end of January, two months after its debut, the cable-like TV service had surged to about 328,000 subscribers, according to people familiar with the matter. Yet DirecTV Now lost 3,000 customers in February, and its subscriber growth was roughly flat in March, the people said.
At a recent investor conference, AT&T Chief Executive Officer Randall Stephenson said DirecTV Now initially “caught fire” after the launch, adding about 200,000 subscribers in December. That was “much faster than we were wanting to go,” Stephenson said at a JPMorgan Chase & Co. investor conference this week. “And so, we’ve kind of pulled back.”
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AT&T is the latest company to offer a new alternative TV package that streams live broadcasts over the internet -- it's called DirecTV Now and for a limited time, customers can sign up for a promotional deal that offers more than 100 channels for $35 a month.
The service, which launches in the US on November 30, competes directly with Sling TV (from rival satellite company Dish) and Sony's PlayStation Vue, both of which offer similar streaming video packages. They're expected to be joined in 2017 by offerings from Hulu and Google's YouTube.
There's no word yet on how long DirecTV Now's $35 pricing deal will last, but standard pricing is broken down into four tiers:
- Live a Little: 60-plus channels for $35 per month
- Just Right: 80-plus channels for $50 per month
- Go Big: 100-plus channels for $60 per month (currently available for $35)
- Gotta Have It: 120-plus channels for $70 per month
- Subscribers can also add HBO or Cinemax to their account for an extra $5 per month, which is $10 less than the cost for HBO Now.
Like its competitors, DirecTV Now is an app that works on many existing
platforms. At launch, that includes Apple TV, Amazon Fire TV devices,
Android phones, iPhones and iPads, Vizio and LeEco smart TVs and PCs
and Macs with standard Web browsers. Support for Roku streamers and
Amazon Fire tablets is said to be coming in early 2017.
Unlike standard cable or satellite plans, there's no annual contract or
additional hardware needed (beyond one of the devices listed above). Of
course, you'll need a good broadband plan that can support HD video
streaming. (For AT&T users, DirecTV Now streaming won't count
against any data caps.)
Customers can get an Apple TV included with 3 months pre-paid of any DIRECTV NOW package. Apple TV features high-performance hardware and an intuitive and fun user interface using voice and the Siri Remote. For details, visit www.directvnow.com/appletv.
Customers can opt for an Amazon Fire TV Stick with Alexa Voice Remote included with 1 month pre-paid of any DIRECTV NOW package. For details, visit www.directvnow.com/FireStick.
For your convenience, we've created this chart that compares channel lineups for DirecTV Now, Sling TV and PlayStation Vue. It's arranged in
alphabetical order by channel name and lists availability according to
package tier.
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DirecTV Now will launch on Nov. 30 with four tiers service with the lowest at $35 per month for 60-plus channels. There will be a limited time $35 introductory lifetime price for the $60 package with over 100 channels which could entice early adopters. While AT&T management had previously teased a 100-plus channel package for under $40 per month, such pricing is only for a limited time while permanent pricing is in line with the current offerings from Sony’s PlayStation Vue and Dish’s Sling services.
However, we still see several flaws with DirecTV Now. First, the service is still in negotiations with CBS, whereas Vue includes CBS On-Demand and local channel in select markets. Second, DirecTV Now currently lacks a cloud DVR option and only offers a limited ability to pause live TV, which we view as major deficiencies versus the more mature Vue service.
***
DirecTV Now will launch on Nov. 30 with four tiers service with the lowest at $35 per month for 60-plus channels. There will be a limited time $35 introductory lifetime price for the $60 package with over 100 channels which could entice early adopters. While AT&T management had previously teased a 100-plus channel package for under $40 per month, such pricing is only for a limited time while permanent pricing is in line with the current offerings from Sony’s PlayStation Vue and Dish’s Sling services.
However, we still see several flaws with DirecTV Now. First, the service is still in negotiations with CBS, whereas Vue includes CBS On-Demand and local channel in select markets. Second, DirecTV Now currently lacks a cloud DVR option and only offers a limited ability to pause live TV, which we view as major deficiencies versus the more mature Vue service.
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