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AT&T to launch new DIRECTV-branded OTT product

AT&T Inc. plans to launch a new over-the-top DIRECTV-branded product by the end of the year, bringing the number of its subscription video services to five, John Donovan CEO of AT&T Communications, said at a conference.

Speaking at the MoffettNathanson Media & Communications Summit on May 15, Donovan said the new service will differ from its current DIRECTV-branded OTT product DIRECTV Now in that it will be a more robust content offering that more closely resembles its satellite-delivered linear DIRECTV service.

The new DIRECTV OTT offering will look and feel the same as the satellite service, but it will be less expensive on the front end, he said.

"It will be a thinner, lighter version. And it will have not only a lower price point, it will have margins that are similar, and therefore, better returns because of the less upfront cost," Donovan said.

Donovan did not disclose how much the new product would cost, but said it will allow AT&T to provide service in areas where customers cannot receive a signal and in housing complexes that do not allow satellite dish installation.

The company has also announced plans to launch AT&T Watch, a skinny TV service that does not include sports. The product would cost $15 a month for non-AT&T wireless customers and would be free for AT&T's wireless customers with an unlimited data plan.