‘Stay tuned’ was AT&T CEO Randall Stephenson’s message to investors at this week’s UBS Global Media and Communications Conference. Stephenson chose his words to underscore the point that AT&T is working hard to maximize the synergies of its wireless, wireline and media businesses as it integrates DirecTV.
Stephenson hinted that AT&T is working on a mobile video service, indicating that the carrier will not be standing by while T-Mobile US and Verizon Wireless grab the mobile video spotlight. Verizon’s Go90, a free app for customers of all wireless carriers, offers mobile access to select live and on-demand video. Verizon is leveraging AOL’s ad serving capabilities for Go90; AT&T will leverage DirecTV’s relationships with content providers.
“Putting together a bundle of DirecTV content they can acquire over a mobile device or a single screen in the home: that is something we are very interested in … You should assume we’re doing something,” said Stephenson, according to Deadline Hollywood.
Stephenson did not say whether or not AT&T would charge customers for such a service. Mobile video viewing can drive revenue for carriers if it motivates customers to upgrade their data plans. But AT&T is targeting people who may not yet be subscribers to its wireless network, or to DirecTV. Stephenson said that 30 million U.S. homes currently have no pay TV service, and that AT&T wants to create bundled content to attract these people.
DirecTV is not AT&T’s first foray into video. Last year the company struck a deal with The Chernin Group to develop “over-the-top” video services. Peter Chernin is a former president of the News Corporation.
AT&T also has a platform called AdWorks that claims a reach of more than 130 million U.S. customers via TV, mobile and Internet. AdWorks offers advertisers access to high-profile sporting events including basketballs’s Final Four, the NFL Playoffs, and the NBA Finals. AdWorks has already been integrated into DirecTV’s NFL Sunday Ticket.
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