AT&T is simplifying its linear streaming video lineup by merging AT&T TV Now, its virtual MVPD, with AT&T TV, its IP-based video product that launched last year.
It means that AT&T TV Now will no longer be accepting new customers. However, existing subscribers will be able to continue using the streaming service.
AT&T pointed out that the Entertainment package on AT&T TV has 20 more channels than the old entry level package on AT&T TV Now and that all AT&T TV monthly-contract packages come with 20 hours of cloud DVR storage included.
“We’re bringing more value and simplicity by merging these two streaming services into a single AT&T TV experience,” said Vince Torres, senior vice president of marketing at AT&T, in a statement. “Customers can stream the best collection of live and on-demand programming on devices they already have, or they can get our exclusive AT&T TV STREAM Device to enjoy enhanced features and functionality.”
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AT&T TV Now has been consistently losing subscribers for several consecutive quarters. The service ended the third quarter with 683,000 subscribers, well behind competitors like Hulu + Live TV (which has 4.1 million) and YouTube TV (which has 3 million).
As AT&T moves to consolidate its linear streaming TV options, the company is also reportedly getting closer to a deal for DirecTV, its struggling satellite TV division. According to the Wall Street Journal from December, the company has received bids valuing DirecTV at more than $15 billion including debt. Special purpose acquisition company Churchill Capital is reportedly one of the bidders. Apollo Global Management, which has long been tied to a potential deal for DirecTV, reportedly submitted a bid valuing the satellite operator at less than $15 billion.
AT&T is reportedly looking to get DirecTV off its books and give up operational control of the company while still maintaining majority ownership.