DirecTV Now customers are going to see that name disappear sometime this summer.
AT&T (NYSE:T) notes that it is switching the branding for DirecTV Now into its new AT&T TV service. This means that DirecTV Now will be changing its name to AT&T TV Now. The company says this won’t result in an interruption of service for current DirecTV Now customers. Instead, they will just have to accept terms of service again to get back to streaming.
Anyone that is using the DirecTV Now will also see it change to become the AT&T TV app. A new app for AT&T TV will also launch, but older customers won’t have to download the new app. Instead, the old one will update to reflect the change.
According to the company, AT&T TV will be a service that allows users to access premium content. However, it won’t require any type of satellite subscription. In other words, it’s an option to draw in cord cutters that don’t want standard cable packages.
Distancing its streaming service from DirecTV may be the best option for AT&T. The company saw 778,000 premium video subscribers drop out during the second quarter of the year. On top of that, there were 168,000 customers that decided DirecTV Now just wasn’t worth the price during the period.
T stock was down slightly as of Tuesday afternoon. However, the stock is up 16% since the start of the year.
As of this writing, William White did not hold a position in any of the aforementioned securities.