New DirecTV Service Won't Jump-Start OTT Revolution

DirecTV Now will launch on Nov. 30 with four tiers service with the lowest at $35 per month for 60-plus channels. There will be a limited time $35 introductory lifetime price for the $60 package with over 100 channels which could entice early adopters. While AT&T management had previously teased a 100-plus channel package for under $40 per month, such pricing is only for a limited time while permanent pricing is in line with the current offerings from Sony’s PlayStation Vue and Dish’s Sling services. However, we still see several flaws with DirecTV Now. First, the service is still in negotiations with CBS, whereas Vue includes CBS On-Demand and local channel in select markets. Second, DirecTV Now currently lacks a cloud DVR option and only offers a limited ability to pause live TV, which we view as major deficiencies versus the more mature Vue service.

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