AT&T TV Now sunsets
AT&T is merging its two, similarly named, streaming TV services into one platform. AT&T TV Now, formerly known as DirecTV Now, will now roll up into the more recently launched AT&T TV product. The new service will provide consumers the option of watching from their own device or using the company’s Android based streaming set top box. Additionally, there will be two pricing options, one with a contract that has a discounted first year followed but an increase in the second year, or a no-contract option.
The NPD Take:
- AT&T struggled to gain footing in the vMVPD space after mitigating their low cost, loss leader plans and further confused consumers by launching two similarly named services. The company aims to attract and retain more profitable customers by collapsing the two services.
- Pricing remains confusing with the contract option quickly becoming as expensive as traditional cable after the first year compared to the more straight forward pricing options of other vMVPD competitors. AT&T may still need to fine tune the approach to remain competitive in the space.
Netflix upping the stakes for movie night
Netflix announced this week that they will be releasing a new movie every week for the rest of 2021 for a total of 71 films currently planned. And, for those of you counting, there are still just 52 weeks in the year. The company is leaning heavily into movies this year as many theaters remain shuttered and studios adjust distribution plans for films that have been pushed back because of the pandemic. Like other services, including HBO Max & Disney+, Netflix hopes that continually releasing new high-quality movies will keep consumers engaged with fresh content and attract new subscribers.
The NPD Take:
- Consumers still aren't going to the theaters and won't be for some time. As studios have adapted to the current situation releasing high profile movies to their own streaming services, Netflix wants to ensure they are part of the consideration set and keeping consumers engaged with their own slate of films.
- With new movie distribution still in flux, weekend movie nights continue to look very different. More studios may opt to release their movies direct-to-consumer either through Netflix or their own streaming services. Will consumers behavior be forever changed, and will theatrical distribution be only for blockbuster action movies and year-end Oscar hopefuls?
Hulu’s college perks
Hulu unveiled a $2 per month ad-supported plan aimed at college students, about the same price as another college staple, Ramen noodles. This isn’t the first time Hulu has offered steep discounts to college-bound viewers and isn’t necessarily even the best deal. There is also a $5/month plan that includes Spotify and Showtime. The student plans are available for the duration of college enrollment.
The NPD Take:
- Deep discounts aren't new for Hulu. The aim of the promotion is to continue to build a pipeline of young viewers who become hooked to the service in hopes they may someday upgrade to a higher priced tier while at the same time driving more ad revenues.
- The promotion makes sense as Hulu attracts a slightly younger audience than other major streaming services with content geared toward this demographic such as FX and adult animated comedies. This could be something other services look to apply to their promotions.