AT&T this morning announced the launch of a second TV streaming service, called WatchTV, days after its merger with Time Warner. The lower-cost alternative to AT&T’s DirecTV Now will offer anyone the ability to join WatchTV for only $15 per month, but the service will also be bundled into AT&T wireless plans. This $15 per month price point undercuts newcomer Philo, which in November had introduced the cheapest over-the-top TV service at just $16 per month.
With WatchTV, customers gain access to over 30 live TV channels from top cable networks including A&E, AMC, Animal Planet, CNN, Discovery, Food Network, Hallmark, HGTV, History, IFC, Lifetime, Sundance TV, TBS, TLC, TNT, VICELAND, and several others. (Full list below).
Shortly after launch, it will add BET, Comedy Central, MTV2, Nicktoons, Teen Nick, and VH1.
There are also over 15,000 TV shows and movies on demand, along with premium channels and music streaming options as add-ons.
While the new WatchTV service is open to anyone, AT&T is also bundling it into two new unlimited plans for no additional cost.
These plans are the AT&T Unlimited & More Premium plan and the AT&T Unlimited & More plan.
The Premium plan customers will have all the same features of the existing AT&T Unlimited Plus Enhanced Plan, including 15 GB of high-speed tethering, high-quality video and a $15 monthly credit towards DirecTV, U-verse TV, or, AT&T’s other streaming service, DirecTV Now. They can also choose to add on other options, like HBO, Showtime, Starz, Amazon Music Unlimited, Pandora Premium and VRV, more for an additional fee. Add-ons can only be swapped out once per year.
The regular plan (AT&T Unlimited & More) only offers SD video streams when on AT&T’s network, including when customers are viewing WatchTV. It also includes the $15 monthly credit towards other AT&T video services and up to 4G LTE unlimited data.
The Premium plan costs $80 for a single line after the AutoPay billing credit; or $190 for 4 lines. The regular plan is $70 with the AutoPay billing credit and paperless billing. It’s $5 more per line per month then the current Unlimited Choice Enhanced plan, but when you go up to 4 lines, it works out to the same price as before, $40 per line per month.
AT&T CEO Randall Stephenson had previously revealed the carrier’s plans for the new low-cost streaming TV service while in court defending the Time Warner merger against anti-trust claims. He used its launch as a point of rebuttal against comments about the ever-higher prices for AT&T’s DirecTV satellite service.
The Justice Department was concerned that following the merger, AT&T would raise prices on Time Warner’s HBO and Turner networks, like TNT, TBS and CNN, in order to prop up its own offerings. For now, it seems AT&T will just come up with a million different ways to generate revenue from its networks, by offering different bundles and packages to AT&T customers and other consumers.
The company also touted the merger, when announcing today’s news:
Our merger brings together the elements to fulfill our vision for the future of media and entertainment. We’ll bring a fresh approach to how media and entertainment works for you—including new offerings that integrate content and connectivity.