AT&T is still testing its Android TV-based set-top box for its upcoming streaming TV service but Netflix says there’s already a deal to integrate the Netflix app.
The company announced the partnership with AT&T today in its earnings release. AT&T did not immediately respond to a request for confirmation.
The deal with AT&T adds to Netflix’s current list of TV service provider integration agreements. The company already has deals in place with Comcast, Dish Network, Verizon, T-Mobile, Charter and Altice.
AT&T has slowly been revealing information about its new streaming TV service, which is due to launch in the third quarter. Last month John Donovan, CEO of AT&T Communications, called the upcoming service the consumer product he’s most excited about since the iPhone.
“It radically reshapes what your concept of television is. We think we’re going to really be disruptive in the market on features and capabilities. But we need to evolve our product,” Donovan said during a Credit Suisse investor conference.
The service will use an IP connection instead of a satellite dish like DirecTV, but the channel packages will be closer in line to the full DirecTV service rather than the skinnier bundles available with DirecTV Now and Watch TV.
Part of the appeal of a streaming DirecTV product is that it will lower customer acquisition costs for AT&T by removing the need for a service visit to install a satellite and set up the TV service. Donovan said this product will also help establish connections with customers who can’t get satellite service due to issues with line of sight. He said approximately 20% of U.S. households can't get satellite service. He said that in cases where DirecTV discovers it can’t install service for interested customers, the company essentially wasted the money it spent on marketing and installation.