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%."
- Investors Business Day had this report
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