Can AT&T out-Netflix Netflix with its own video service? - CNET

It's telling that when talking about "TV everywhere" -- the concept you should be able to watch video on any device -- Stephenson gave a shout out to Netflix rather than traditional cable providers.

"I don't think anybody has executed it very well," he said of TV everywhere in a CNBC interview last week at the World Economic Forum. "Netflix has done the best."

Setting the foundation

Ever since AT&T closed its purchase of DirecTV in July, the company has been working to renegotiate its deals with key channels and content providers like ESPN, HBO, Showtime and Viacom. The talks have centered on securing "stacking rights," or the ability to offer the back catalog of hit shows, like "Game of Thrones" or "The Daily Show, and the flexibility to stream them on to mobile devices.

That's in addition to marquee deals like DirecTV's access to National Football League games and its investment in a joint venture with the Chein Group, Otter Media, which is designed to produce video for its customers.

"We have about as robust an entertainment portfolio of content for our customers as any (over-the-top) provider out there," Stephenson said at an investor conference last month.

While many channels offer their own app -- take HBOGo and WatchESPN -- AT&T envisions a single program that will let you flip through channels on your phone or tablet as if you were flipping through the guide on your TV. There would be no need to constantly log into different apps to prove you're a subscriber.

All of these deals could add up to a cord cutter's dream -- if AT&T decides to be aggressive with its offering.

Sling TV and PlayStation Vue each offer an over-the-top service with live channels, but lack the catalog of older shows and movies. Conversely, Netflix has few live or new shows aside from its original programming, but boasts a large library of older content. AT&T could offer something that's the best of both worlds.

Netflix, Sony and Sling declined to comment for this story.

AT&T just needs to have a good interface, plenty of content and to make it easy to share the login information, said Roger Entner, a consultant for Recon Analytics. "AT&T can focus on great content that people are aware of," he said.

Same old bundle game?

The question is just how aggressive AT&T plans to be in offering a standalone service.

Given AT&T's roots as a service provider, the temptation to bundle the service has got to be tremendous. You saw it earlier this month when it brought back the unlimited data plan, which it originally killed five years ago, as a hook to get folks to sign up for DirecTV or U-verse TV.

AT&T plans to offer its unlimited data plan with the upcoming video service, according to the person familiar with the company's plans. While one version of the service will be available to cord cutters with their own Inteet connection, AT&T hopes to tie customers back to a bundle, whether it's wireless, more traditional pay-TV or even its Digital Life smart home service.