DirecTV wants to be the next online substitute for cable

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DirecTV wants to be the next online substitute for cable

It will also be available via the web and on Android and Amazon devices. The average household with cable pays about $103 per month, according to Leichtman Research Group, a research firm for the broadband, media and entertainment industries. (Existing customers will be grandfathered in.) AT&T didn't say when that will happen.

Stankey said DirecTV Now takes the cost out of a platform that will continue to be improved upon, and the savings are being passed back to customers. AT&T is taking advantage of this by launching new video streaming services namely FreeVIEW, Fullscreen, and DIRECTV NOW.

DirecTV Now, available Wednesday, will have some of those same problems. Among the various channels included in this service is Taylor Swift Now, a channel devoted exclusively to the country-pop superstar. AT&T also is collaborating with Taylor Swift and Reese Witherspoon to carry exclusive content from the stars on new channels expected to launch soon.

And there are a few other things you won't get with DirecTV Now. "CBS is the missing sole", AT&T Entertainment CEO John Stankey says. DIRECTV's satellite offering has pretty much every channel you can imagine, plus every sporting event and National Football League game. As an introductory promotion, AT&T will offer 100 channels for $35. It will compete directly with services such as Sling TV and PlayStation Vue when it launches on November 30 starting at $35. Alternatively, you can get a free Amazon Fire TV Stick when you prepay for one month of service. When CBS is added, its National Football League games will be available, too.

We'll have more on streaming services in the coming weeks. Taylor Swift Now will be available exclusively to AT&T customers across all of AT&T's video platforms, namely DirecTV, DirecTV Now and U-verse later this year.

That deal itself came hot on the heels of another acquisition: satellite TV player DirecTV for $48.5bn. For starters, if you're an AT&T Wireless customer, you'll be able to watch DirecTV Now programming without affecting your monthly data allotment. Streaming television will require massive amounts of data, so that's a huge plus for AT&T customers on any data plan.

And consumers could save substantial amounts of money thanks to the influx of new services. While the previously quoted price of $35 for 100 channels won't be permanent, DirecTV Now looks to be very competitive on selection and price alone, although there are still some holes that need filling.

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