Following rivals, AT&T says DirecTV won’t need a dish or box

AT&T is launching three new video services that cater to customers’ growing appetite for video and desire to watch anywhere. The company has not revealed pricing for the two subscription services (Now and Mobile). It is describing the most full-featured, one, confusingly named “DirecTV Now”, as something that sounds similar to traditional TV, or the “skinny bundle” that Dish sells via its Sling TV. Meanwhile, “DirecTV Mobile” will offer a mobile-first experience in what could be a solid answer to Verizon’s (VZ +1.4%) Go90. You can think of it as being more in the Hulu camp. And from what I can tell, AT&T doesn’t know, because AT&T is just starting negotiations with many big TV programmers.

Here’s a comment from ESPN, whose top exec John Skipper has said the company was exploring programming deals with “other distributors” for products like Sling: “We are having productive conversations but we have nothing to announce at this time”.

AT&T says it will solve problems that beguile viewers, like the requirement to log in to web sites and apps to access a cable subscription.

DIRECTV will continue offering its satellite TV package that can also be streamed through an app on mobile devices, in addition to its U-Verse TV and Internet services, the company said. It’ll be available later this year, according to a company release.

AT&T’s new TV streaming service is going to be launched under the DirecTV brand and it has confirmed that subscribers will not require an existing DirecTV service plan, satellite dish, set-top box or a contract to use the service. “Being a scaled provider like we are with the reach that we have, creating offers of content that we premium in nature and appeal to lots of consumers is really important”.

The first option DIRECTV Now will offer all content in its current packages, including add-ons, live and on-demand video. Customers will be able to access the service over a wired or wireless Internet connection and on Internet-enabled devices.

“This is mostly about giving cord-cutters a way of staying with AT&T and maybe capturing some of the users that don’t pay for TV”, said Jan Dawson, an analyst with Jackdaw Research. Finally, DirecTV Preview will be a free ad-supported streaming plaform with select DirecTV programs, and content from AT&T’s AUDIENCE Network, Otter Media, and several other networks and sources.

But AT&T sees an opportunity to become a power in online video by offering options that cost less than the conventional DirecTV home service – and that would be especially appealing to the 20 million or so households that don’t subscribe to pay TV. You don’t have to be an AT&T phone customer to sign up. Even the platforms DirecTV Now will be offered on hasn’t been confirmed.