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Next month AT&T joins the increasingly competitive market scrambling for America’s eyeballs as it rolls out DirecTV Now streaming service. The company’s CEO announced Tuesday that access to more than 100 channels will set back viewers $35 a month,...

AT&T announces subscription price of its new streaming service

Next month AT&T joins the increasingly competitive market scrambling for America’s eyeballs as it rolls out DirecTV Now streaming service. The company’s CEO announced Tuesday that access to more than 100 channels will set back viewers $35 a month,...

AT&T announces subscription price of its new streaming service

Next month AT&T joins the increasingly competitive market scrambling for America’s eyeballs as it rolls out DirecTV Now streaming service.

The company’s CEO announced Tuesday that access to more than 100 channels will set back viewers $35 a month, significantly less than a standard cable subscription. Randall Stephenson said the company can charge less because it won’t have to worry about satellite dishes, cable boxes and set-up visits to customer homes.

Viewers are increasingly deciding to cut the cord on cable in light of skyrocketing prices, less flexible programming and the rise of high-quality streaming alternatives. Consumers have come to expect they can access television shows on their phones, tablets and computers whenever they want, and they want to pay less for it. Cable bills rose at eight times the rate of inflation from 2011 to 2015, now resting at $103.10. Those cutting the cord most often cite cost as the reason they’re dropping cable, with 800,000 people doing so in the second quarter of this year.

A complete list of channels on DirecTV Now hasn’t been made public, but it is expected to include offerings from NBC Universal and Disney. Last week’s announced merger between AT&T and Time Warner would mean that company’s channels like HBO and CNN could also be included. That deal, in which AT&T would buy Time Warner for $86 billion, must first be approved by regulators.

AT&T bought DirecTV last year for $49 billion.

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