So, what is AT&T doing? How can they be giving away so many free Apple TVs, Rokus, and Fire TVs over the last year? How can they offer $25 to $35 off every month on DIRECTV NOW?
If you look at DIRECTV NOW as a way to sell AT&T Mobile Phone plans it becomes clear. AT&T wants to push great deals on DIRECTV NOW and their new AT&T Watch service to push AT&T Wireless plans. AT&T Wireless plans are profitable for AT&T and often once you are locked into a service you are far less likely to switch plans.
This gives AT&T a huge advantage over other services that are trying to make a profit off just the streaming service. AT&T can happily run slightly below or at cost if DIRECTV NOW can drive new AT&T Wireless customers.
If you look back over the last year and a half of DIRECTV NOW everything AT&T has done makes sense as an effort to sell AT&T Wireless services.
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