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Here’s AT&T’s Plan to Win Over Cord-Cutters

March 1, 2016, 8:57 PM UTC
Photograph by Getty Images/Image Source

AT&T, which owns satellite broadcast service DirecTV, is preparing to jump into the online media streaming game with three upcoming services.

On Tuesday, the company unveiled its plans to provide customers with access to television and movie streaming available in late 2016, and they won’t require a satellite dish, set-top box, annual contracts, or existing AT&T (T) services. Just an Internet-connected service like a phone, laptop, or media streaming hub will do.

The company had hinted at these services in late 2015. CEO Randall Stephenson also acknowledged to Fortune last June that the DirecTV acquisition is largely about video streaming on mobile. AT&T says more than 60% of its network traffic (what people do while using its Internet service) is streaming video.

The core service, DirecTV Now, will provide “much of what is available from DirecTV today—on-demand and live programming from many networks, plus premium add-on options,” according to AT&T. Customers just need to sign up for the service, download the app, and start to watch content.

DirecTV Mobile will be focused on users who prefer to watch on smartphones or tablets. It will offer both “premium” content as well as video tailored for services.

The third option, DirecTV Preview, will be a free tier (read: lots of ads, shallower selection of content) largely focused on young adults. It will offer content from several networks, as well as Otter Media, AT&T’s online media partnership with The Chernin Group.

AT&T didn’t say much in terms of pricing, other than it will be “affordable,” which it likely will be. Satellite and cable television services are fairly expensive, and more and more consumers no longer see the value in paying for them. These streaming services could prove a great way to scoop up or keep the price-conscious ones. It also needs to compete with rivals like Dish’s Sling TV.