“The unlimited data mobile wars have been going for awhile … as T-Mobile, AT&T and Verizon encourage people to (buy) the highest tier of mobile services,” said Brett Sappington, who studies both traditional and non-traditional pay TV providers at research outfit Parks Associates.
WatchTV, then, is just the latest incentive that AT&T can use to dangle in front of its (and its competitors’) customers to get them to pony up for its priciest wireless plans. The company has 160 million wireless subscribers in the U.S. and Canada, so getting those folks to spend more on their service promises billions in business. For context, in the first quarter, AT&T reported revenue of $38 billion, and more than $17 billion came from its biggest business: mobile.
From the article "What is AT&T thinking with WatchTV?" by Jennifer Van Grove.
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Beyond that, AT&T also gets revenue by licensing those movies and TV series to other pay-TV providers and subscription Net TV services such as Netflix. "Video and entertainment will remain the key dri...
