Report: AT&T Thinks It Can Sell $17-A-Month Streaming Package

Media and telecom giant AT&T Inc. T is exploring a $16-to-$17-a-month streaming video package that includes most of its entertainment properties, according to The Wall Street Journal, which cited people familiar with the matter. 

What Happened

The streaming video battle continues to expand, but AT&T may think it has a market for a package of HBO, Cinemax, Warner Bros. TV, a movie library and original content, WSJ reported. The price tag may seem excessive in an era of low-priced options like Walt Disney Co DIS's $6.99-a-month service, but a $17 price tag is just $2 more than what AT&T charges for HBO Now.

Why It's Important

AT&T's reported bundle would mark a shift from the company's prior strategy of offering three tiers, according to WSJ.

The company had hoped to offer an entry-level subscription with movie access and a midlevel package including original programming and blockbuster movies. The highest-end package would include the company's Warner Bros. content.

A shift in strategy may prove to be the right move: MoffettNathanson's Craig Moffett was quoted by WSJ as saying the prior three-tier strategy "never made much sense and is too complicated to fly in the marketplace."

What's Next

AT&T's new streaming package could be released to the public in March 2020, a source told WSJ. It is also possible WarnerMedia could introduce an ad-supported version of its streaming service at a cheaper price point later in 2020, WSJ said.

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Photo by Coolcaesar via Wikimedia.