AT&T had a good start to DIRECTV NOW at least in the number of signups. According to a SEC document filled today and sported by Variety AT&T added more than 200,000 video subscribers in the fourth quarter — which was “entirely driven” by its new DRECTV NOW internet-delivered pay-TV service, AT&T said Friday.
“While it’s early days, our recent conversations with investors have focused heavily on whether [virtual pay-TV service providers] will be incremental vs cannibalistic, and we’ve been arguing incremental,” RBC Capital Markets analyst Steven Cahall wrote in a note to clients Friday. “This potentially sets up Q4 results for interesting subscriber commentary.”
In the 4th quarter, AT&T said it added more than 900,000 “branded net adds’ of domestic wireless subs – 500,000 postpaid and 400,000 prepaid, with branded phone net adds of more than 330,000. At the end of 2016, AT&T had about 2.3 million remaining total 2G subs and non-voice phone connections, of which about 100,000 were postpaid.
DIRECTV NOW starts at $35 monthly for a bundle of 64 channels (including local stations where available), ranging up to a 130 channels for $70 per month. Local channels on DIRECTV NOW are available only in select markets from ABC, NBC, Fox and Telemundo.
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