Analyst Thinks AT&T Direct TV Streaming Service Will Be A Threat To Netflix

Analyst for years have been predicting that someone was going to come along and knock Netflix off of it’s perch as the leader in paid streaming services. Hulu, Amazon Prime, HBO Go and more were all said at one time or another to be the one to take down Netflix.

Most of the conventional wisdom pundits it seems want to believe Netflix shouldn’t still be standing since they aren’t a traditional media company or part of a rich tech conglomerate. What many fail to realize it is precisely those reasons Netflix is still standing. Since they aren’t a traditional media company they have the ability to focus on whatever shows and movies their viewers want, they aren’t tied down to a huge back catalog that they need to sell to satisfy shareholders. Secondly since they aren’t part of a huge conglomerate they have one mission and one mission only finding out what viewers want to pay for and deliver to retain and grow subscriptions.

Here is the latest predicition of a Netflix take down by AT&T from an analyst at Motley Fool:

AT&T’s entry into the streaming video market could hurt streaming leader Netflix in several ways.

-First, AT&T’s pay TV bundles feature live content and optional add-ons like HBO and its exclusive NFL Sunday Ticket Package — all features that Netflix lacks.

-AT&T can leverage its position as a leading ISP and wireless carrier to add its new streaming packages to broadband and wireless bundles, which might win over cord-cutters.

-Netflix has to pay AT&T and other ISPs for the “paid peering” deals that allow it to hook directly in their networks, enabling it to maintain high-quality connections for video streaming. As 4K video becomes standard, Netflix videos will consume even more bandwidth, and it might need to pay ISPs even higher rates to secure those direct connections.

Again, I think most analysts like the one above is missing the point. While the above points made are certainly good reasons AT&T might be able to make their Direct TV streaming service successful with coord cutters, I don’t think it comes down to a choice of picking it up or picking up Netflix. Even current cable customers seem to favor having a Netflix account in addition to their cable package, I don’t look for that to change for the new Direct TV streaming customers either.

What do you think, will Direct TV or someone else ever knock Netflix off of the top of the streaming mountain? Comment below.

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About the Author

William B. West
William B. West
William B. West is editor-in-chief of CordCuttersTalk.com, Rokuki.com, and StreamingThisMonth.com. All three sites cover the latest cord cutters news, information, and updates.

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