What Impact Could Strategies in Streaming Industry Have on Customers

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As per recent reports, the upcoming streaming service of AT&T®, set to launch in late 2019, will offer 3 distinct subscription tiers. The first subscription tier will offer movies from the catalogue of WarnerMedia, while its second tier will offer WarnerMedia television series and blockbuster movies. The third tier will combine movies from its catalogue with original TV series. Assumedly, this will include shows from HBO®, which the Dallas-based telecommunications company is touting as a huge gain for customers.

The tiered bundle will also comprise “more content licensed from third parties” ultimately. However, the CEO of AT&T®, Randall Stephenson, did not imply how much each streaming service tier would cost. The CEO of WarnerMedia, John Stankey, though, said that the end objective is to have customers yearn for access to all those tiers, but begin at a point they are financially comfortable with.

It is essentially a packaged bundle, though instead of customers selecting from distinct cable packages, everything is available via a top-tier streaming subscription. Spending top dollar will give subscribers original TV programs and access to the library of movies and TV series of WarnerMedia. It could also give them alternatives to some of the best cable deals out there.

The best internet provider and the media division’s bundled streaming approach may sound familiar – it is precisely what the Walt Disney Company is reportedly looking to achieve. It owns ESPN, and will be the majority stakeholder of Hulu once its 21st Century Fox acquisition is finalized. It could then provide a similar bundle to what the Dallas-based Telco wants to achieve with its upcoming streaming service.

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It is a move, which certainly makes business sense considering the present streaming space, and what is in the offing. More companies are rolling out standalone streaming applications to compete against the likes of Netflix and Amazon®, comprising retail giants such as Walmart, and niche platforms such as Crunchyroll’s VRV. Subscribers have only a percentage of their monthly or yearly budget that they can devote toward entertainment. Companies such as Walt Disney and AT&T® rolling out bundled packages, which assumedly would give a discounted price for subscribers who sign up for several services, is a way to lure them in an oversaturated market.

The Walt Disney Company has not officially announced plans to bundle services, but the company CEO, Robert Allen Iger, has implied in earlier investor calls that it is open to exploring them. Now, with AT&T® and its media division implying that they desire to go down that path, it appears more than likely that Walt Disney will announce a similar offering as its streaming service’s launch date nears.

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