More subscribers continue to forego their cable or satellite TV service in favor of streaming. This gives an opportunity to Internet service providers to offer solutions to attract these cord-cutters. Windstream and DirecTV Now appear to be one pairing aimed at doing just that.
This broadband and streaming TV bundle offered by Windstream is aimed at consumers looking to save money. Other providers, including DirecTV owner AT&T, also offer similar packages with quality programming. Is this wave, ushered by Sling TV (from Dish) and others, the new future?
News about the Windstream and DirecTV Now marriage appeared this week in Telecompetitor. Let’s take a closer look at the details.
ISPs pairing with Steaming TV Packages
With cord-cutting on the rise, ISPs continue to pair with a variety of TV streaming services in the hopes of increased business. Windstream is just one of many Internet providers, including the previously mentioned AT&T, Spectrum, Verizon, and others. Tony Thomas, the CEO of Windstream, commented on his company’s approach.
“It’s what I call relevant speeds. We typically provide at least 25 Mbps and we can also provide an over-the-top offering. We do that through DirecTV NOW today. Come to Windstream and get 100 Meg, get DirecTV NOW and cut your bill by half or three quarters,” said Thomas. In short, faster Internet speeds and cost savings make for a good deal.
With Hulu, Netflix, ESPN+, and other relatively low-cost streaming services, cord-cutting looks more attractive to customers. The key is ensuring your high-speed Internet is able to handle rich-media streaming. The premium broadband level mentioned by Windstream’s Thomas works for most scenarios.
Be sure to use our accurate Internet speed test to ensure your ISP is holding up their end of the bargain.
OTT Streaming Options stealing Residential Customers from Cable and Satellite
These streaming TV services are collectively known as over-the-top or OTT. In addition to the ones mentioned earlier, Amazon Prime, HBO Go, and PlayStation Vue also provide value compared to a full television subscription. When paired with ISPs able to offer higher Internet speeds, OTT hopes to be a gamechanger within the industry.
Additionally, the ability to bundle an OTT service with Internet and digital phone also saves money. Thomas feels the broadband and OTT bundle trend is only starting to grow. In fact, the company only started offering the Windstream/DirecTV Now package this February. As such, they are putting less emphasis on their Kinetic IP TV offering, in lieu of this new digital entertainment strategy.
These OTT deals also pay dividends for AT&T’s DirecTV, illustrating how their purchase of the satellite service was a smart call. Because of the DirecTV Now opportunity, Thomas mentioned Windstream decided not to develop its own OTT service. “We are more than willing to be a distribution arm for OTT video and let it drive consumption of our broadband infrastructure, which enables customers to get faster speeds from us,” said Thomas.
In short, expect more Internet providers to offer OTT entertainment providers to gain a share of the cord-cutting market. Stay tuned to Bandwidth Place for additional insights on this growing area of the pay TV industry.