AT&T Might Already be Poised to Disrupt Video Markets

AT&T argues its acquisition of Time Warner will help it disrupt video markets. Even in advance of the proposed acquisition, AT&T appears to be doing so. DirecTV Now, the new steaming service, will offer 100 channels for $35 a month, a price point that is disruptive for the streaming video market.

In significant part, the price point seems to suggest one key advantage for over-the-top services, compared to traditional linear services. DirecTV Now will not require a technician visit, a dish installation or use of in-home customer premises equipment.

The truck roll along represents costs upwards of $100. The traditional install also requires the installation labor, hardware and then in-home decoders (one to several). It might not be unreasonable to suggest such costs represent $600 or more, in operations and capital investment, for each new install.

DirecTV Now will have none of those costs.
Post a Comment

Popular posts from this blog

Spectrum Fees, High Incremental Capex, Lower Value in Ecosystem Mean Historic Changes Might be Necessary

For Ting, Operating Costs are Key to Business Model

Lower FTTH Costs Improve the Business Model, But How Much?