Analyst expects DirecTV streaming announcement

DirecTV (Nasdaq: DTV) could announce a new streaming TV service, Citigroup analyst Jason Bazinet wrote in a note to investors according multiple reports. DirecTV is set to host an investor day Thursday.

DirecTV didn't immediately respond to our request for comment.

Such a service could require DirecTV to renegotiate contracts it has with content providers. This hurdle has seemingly kept other would-be over-the-top providers out of the market.

The economics to DirecTV could be enticing as the costs of delivering service over the top are far lower than through satellites, he wrote.

Many investors look at the satellite TV operators as strategically challenged because they lack the broadband infrastructure enjoyed by their cable and telco rivals, Bazinet wrote. "But a full conversion ... to IP Delivery could boost DirecTV's long-term cash flow by 60%-70%."

For more:
- Investors Business Day had this report

Related articles:
DirecTV, Charter execs discuss online video future 
Google is latest to explore OTT service 
DirecTV, TWC, AT&T still in the hunt for Hulu as pay-TV distributors seek broader OTT rights

Suggested Articles

Increased internet speeds will outpace premises WiFi capabilities, category cables can deliver the high speed and low latency demanded by consumers.

Disney+, Disney’s subscription streaming service launching November 12, will play a big role in the studio’s plans for Phase Four of the Marvel Cinematic…

After announcing a deal to integrate the Amazon Prime Video app earlier this year, Virgin Media said that service is now available to millions of its TV…