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Introduction

AT&T's OTT service and its long-term transformation strategy can bring significant gains for AT&T, but Ovum notes the midterm challenges that AT&T still has in reversing its subscriber and market share declines.

Highlights

  • AT&T’s OTT video service, DirecTV Now, is expected to launch before year-end. AT&T continues to show how serious it is about DirecTV Now, announced in March 2016, by adding premium content providers to the service’s portfolio.
  • While AT&T is among the top three providers in fixed voice, fixed broadband, and pay TV in the US, it is not a story of recent growth. In recent quarters, there has been a gradual decline in each of these customer segments.
  • But where the role of broadband could change for AT&T is its position in the bundle. Fixed broadband has long been the anchor product in traditional fixed triple-play bundles for major telcos worldwide, including AT&T. That may change for AT&T with its new strategy.

Features and Benefits

  • Reveals a key element in AT&T's consumer services strategy.
  • Discusses the expected impact of AT&T's expected OTT video service launch.
  • Discusses AT&T's current consumer strategy and how well it is performing.

Key questions answered

  • What are the subscriber growth trends for each of AT&T’s products?
  • What are AT&T’s reasons for launching an OTT video product?
  • With a mobility-first and video strategy, what will happen with AT&T’s fixed broadband product?

Table of contents

Ovum view

  • Summary
  • AT&T to launch OTT video service by end-2016
  • Expansions in video and wireless to counteract declines in wireline
  • What about fixed broadband?

Appendix

  • Further reading
  • Authors

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