AT&T is bringing pay TV to the OTT marketplace with the launch of an Internet-based streaming TV service.
The company announced Tuesday that beginning later this year, it will offer consumers (yes even cord-cutters) three new package options: DIRECTV Now, DIRECTV Mobile and DIRECTV Preview.
Costs and exact content offerings for these services were not disclosed. However, AT&T said the options are "affordable" and will not require annual contracts, satellite dishes or set-top boxes -- just Internet connections.
"There are at least 20 million consumers that are out of the pay TV system today," Tony Goncalves, AT&T's senior vice president of strategy, told Mashable in a phone interview. "Given our reach and scale in content and access technology, we think we are at an interesting point here to reach consumers with new types of entertainment options that could be unique to us."
The decision to launch the service comes as video streaming continues to rise.
AT&T -- -- which acquired satellite broadcaster DirecTV in 2014 for about $48.5 billion -- said it serves more than 60 million streams and downloads to its TV customers each month. More than 60% of the network traffic's comes from video. The company said that in 2015, over 5 million customers used its apps or third-party authentication to stream at least once a month.
AT&T has also ramped up its efforts to reach mobile-first consumers by partnering with digital entertainment company Fullscreen, which boasts a network of 75,000 YouTube, Facebook, Vine and Instagram creators.
The companies have been collaborating since 2012 on approaches to original social storytelling. In 2014, Fullscreen sold a majority stake to Otter Media, the joint venture between the Chernin Group and AT&T.
AT&T hopes to differentiate itself from competitors -- including Verizon, which has its mobile video platform go90 and T-Mobile, which has BingeOn -- with a diverse range of offerings.
DIRECTV Now will offer the most amount of content including on-demand and live programming from "many networks."
DIRECTV Mobile is geared toward the "cord-nevers," or those who have not necessarily subscribed to pay TV. It will provide consumers with "made-for-digital content directly on a smartphone."
DIRECTV Preview, which is a free, ad-supported package, will "showcase content from AT&T’s AUDIENCE Network, many networks and other content sources."
Goncalves couldn't reveal exactly what content will be available to consumers. However, he emphasized the overall "focus is depth and breadth of premium content."
He also said all of the packages -- especially Mobile and Preview -- will include millennial-focused video from Otter Media.
"The reason for [the three packages] is so that we could have different approaches for different types of consumers," Goncalves said. "We think this is a very ecosystem friendly approach."
AT&T said it will continue to provide DIRECTV’s premium satellite TV entertainment service, and customers will still be able to access their programming on virtually all mobile devices.
“AT&T intends to be the first company to deliver flexibility, along with an effortless customer experience,” John Stankey, CEO of AT&T Entertainment Group, said in a statement. “These offers will provide a broad range of customers with greater freedom and choice to watch, binge and even buy premium content, regardless of how and where they enjoy their entertainment."
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