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.