AT&T, one of the leading telecom industries in the country, recently launched their online streaming service called DirecTV Now. This steaming platform is well equipped with an excellent channel lineup, which includes channels such as Fox, ABC, HBO, Scripps Networks, Discovery, NBCUniversal, and many more.
However, AT&T has failed to add one of the most popular networks, CBS, to their DirecTV Now offerings. The decision to let CBS down from the channel lineup has raised great concern among critics and viewers. This means that DirecTV Now subscribers will not be able to access the CBS Network. Many critics seriously doubt that the absence of this network might affect the success of the streaming service.
Reports from several sources indicate that AT&T is still trying to reach a settlement with CBS. However, CBS CEO Leslie Moonves has decided not to enter into any settlement with AT&T, unless the provider comes up with a much more competitive offer. Neil Macker, an analyst at Morningstar says that, “They (CBS) are flexing their muscles here. They may just be trying to step back and see how the service does before they jump in.”
It is evident that DirecTV Now will have to face serious challenge from other steaming service providers such as Sony’s PlayStation Vue and Dish Network’s Sling TV. In addition to that, many other major companies are also planning to launch their own streaming service by the year 2017, which means that the market would grow even more tensed.
Currently, PlayStation Vue is the only streaming service that offers CBS content to their subscribers, although this service is available only in limited areas. CBS is the nation’s most watched network and it holds an approximate 1.46 million-viewer advantage over the second most watched network. The basic package offered by DirecTV Now includes all other major networks other than CBS, but the absence of this chancel can certainly affect the success of the streaming service.
“We find it slightly ironic that CBS is often touted by many as the must-have network for any successful MVPD but that it has been included in zero of three to date,” analysts from Pacific Crest noted. “Despite this anomaly, we generally agree that CBS is a key network for any service that hopes to achieve meaningful scale, and we expect that it will be added sooner rather than later.”