Just days after completing its acquisition of Time Warner in June, AT&T announced
a new internet-delivered pay-TV service called WatchTV. The service will include a package of more than 30 live TV channels as well as a large library of on-demand content and be compatible with smartphones, tablets, web browsers and other streaming devices. Priced at $15 a month, WatchTV will be a cheaper alternative to AT&T’s DirecTV Now service and targeted at customers looking to have a basic supply of TV channels (along with their streaming subscriptions) without being tied to a huge cable bill every month.
As the following chart illustrates, the U.S. pay-TV landscape
is rather fragmented with plenty of choices for customers unwilling to cut the cord
. According to data compiled by the Leichtman Research Group
, the largest pay-TV providers in the United States, representing approximately 95 percent of all subscribers, had 91.3 million subscribers at the end of Q2 2018, down 400,000 since the end of the first quarter. Meanwhile Netflix
, arguably the biggest threat to the entire industry, ended the June quarter with 57.4 million domestic subscribers.