What AT&T / Time Warner Deal means for Cord Cutting

We breakdown what it means for DIRECTV NOW, HBO, Hulu, Philo and other streaming services

A federal judge approved AT&T’s $85 billion acquisition of Time Warner.

This will have a significant implications on the streaming services, cable channels, and future media acquisitions.

Many argue that if pay TV providers also own the entertainment bundle, that prices will continue to go up for content.

AT&T disagrees. They argue that with Time Warner they can be more cost competitive by owning wireless, video distribution, and content.

Earlier this month, AT&T CEO Randall Stephenson announced that if the deal went through they would launch an entertainment-only plan called AT&T Watch for $15 / month or free for AT&T subscribers.

What this means for AT&T and DIRECTV NOW?

• AT&T will now own a wireless service (AT&T), pay TV service (DIRECTV & DIRECTV NOW), and a bundle of cable channels (HBO, TNT, TBS, CNN, etc.)
• Because of the approval, AT&T will launch a entertainment-only bundle called AT&T Watch for $15 / month or free for AT&T subscribers.
• AT&T and DIRECTV NOW customers will likely continue to get HBO at a subsidized price.

Click here to learn more about DIRECTV NOW and AT&T Watch

What this means for Hulu?

• Many expect that this might cause Comcast to challenge Disney’s bid for FOX.
• Currently, Disney has agreed to acquire most of FOX assets including Hulu, regional sports channels, and 21st Century Fox’s film and TV production companies.
• Comcast or Disney would become the majority shareholder of Hulu the acquisition.

Click here to learn more about Hulu Live TV

What this means for Philo?

• Philo currently offers a $16 no sports, no news, entertainment-only live streaming service
• Since AT&T plans to launch a $15 entertainment-only option, Philo may have to compete with a larger company on price.
• However, Philo is backed by major content providers (AMC, Viacom, etc.) which may not be in the AT&T bundle (TNT, TBS, TCM, etc.).

Click here to learn more about Philo

What this means for PlayStation Vue, YouTube TV, and Sling TV?

• There is a risk that AT&T could hold back Time Warner channels from appearing certain streaming services.
• AT&T may be able to be more aggressivly price the service making it cheaper than the other services (especially for AT&T subscibers)

Click here to learn more about live streaming services