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New AT&T Internet Video Service May Give Away Free Apple TV

By
Aaron Pressman
Aaron Pressman
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By
Aaron Pressman
Aaron Pressman
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November 7, 2016, 10:00 AM ET

AT&T may give customers who sign up for its new Internet TV service a free Apple TV set-top box or Amazon Fire USB stick, according to a report on Monday.

Customers who sign up for at three months of the upcoming service, called DirecTV Now, could get Apple’s (AAPL) set-top box, which retails for $149, Variety reported, citing AT&T marketing documents which were posted online inadvertently. Customers only willing to commit for one month could get a free Amazon (AMZN) USB stick, which sells for $40.

AT&T has said it plans to announce DirecTV Now officially by the end of the month. The $35-per-month service will offer about 100 cable channels delivered via the Internet. So customers will need an Internet video device like the Apple TV or Amazon Fire to get the service on their television sets.

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However, the marketing documents may not be final and the promotional offers could be altered or canceled before the service hits the market, Variety said. AT&T declined to comment when contacted by Fortune.

AT&T (T) is the leading provider of traditional pay TV service, with 25 million customers combined in its DirecTV satellite and U-Verse cable video offerings. But the company says the new Internet-only service is aimed at cord cutters and others who have opted not to subscribe to a traditional pay TV service. Similar services from Dish Network (DISH), Sony (SNE) and others have been offered over the past year but none have taken the market by storm.

The AT&T documents also disclosed some of the channels that will be included in the service, such as the Cartoon Network, NBC Sports Network, Bravo, and MTV. Premium channels such as HBO and Cinemax will be available for an additional cost.

The service will allow customers to watch TV shows from some of the networks on demand for up to three days after a program originally aired. The service will also include a video on-demand library with 14,000 titles, Variety reported.

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