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DirecTV Ridicules Cable Users as 'Settlers' in Frontier-Themed Ads

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DirecTV: the final frontier?

A bunch of "Settlers"—a modern suburban family dressed like the cast of Little House on the Prairie—settle for cable rather than DirecTV in Grey's latest ads for the satellite service.

In "Neighbors," Sonny Boy asks Pops why they have to put up with cable's lower customer satisfaction while the folks next door enjoy DirecTV. Dad tells the scamp to go churn some butter and make his own clothes:



"Satisfaction" shows the family's TV setup—a '70s-era (1970s, not 1870s) set with a wonky-looking cable box. Dad equates cable with life's simpler pleasures … like faceless dolls, cabbages and foot stomping:



The work's time-tripping humor connects, though the tech-phobic Settlers seem more like Amish folks than pioneers. (Asked about that, a DirecTV rep tells AdFreak: "These ads take place in an alternate reality and aren't meant to be taken literally.") 

Still, ultimately these one-joke spots feel like placeholders while the client searches for a worthy, longterm successor to its "Versus" campaign with Rob Lowe.

Its recent cable merger-themed spots (starring Jeffrey Tambor and Fred Willard, with Grey reviving an old concept from Deutsch) and ads with various football stars (Petite Randy Moss, Eli Manning) flew right by. And we expect "The Settlers" to quickly fade into history.

And not soon enough. Perhaps DirecTV should settle on one concept and allow it to evolve over time.


Why Jamie Foxx and Jason Biggs Are Chatting With DirecTV's 'Settler' Guy on Twitter

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As the preferred social platform for griping about #firstworldproblems, Twitter is the next logical destination for DirecTV's "Settlers" campaign, which is all about accepting a less-than-perfect life (where, among other indignities, you have cable instead of DirecTV).

And indeed, the "Settlers" patriarch from the TV commercials has begun interacting with various celebrities in planned (and paid) bits of banter, wherein the celeb mentions something irritating in his or her life and Jebediah replies with asinine advice.

Check out some of the interactions below:

The method of disclosure that these were paid interactions is interesting in each case. Adam DeVine bluntly put a #sponsored hashtag in his initial tweet, which might have confused some of his 700,000 followers who wouldn't have known in what sense it was sponsored (though they didn't seem too perturbed).

Jamie Foxx and Jason Biggs, meanwhile, quote-tweeted Jebediah with an #ad hashtag in a subsequent interaction.

This kind of invented banter can generally be dicey—it can seem sneakier than a more traditional endorsement. But these three cases seem to have been received in the humor in which they were intended, judging by the handful of consumer engagements with them.

Grey and BigEyedWish coordinated the Twitter work. And Grey also released a new spot in the campaign today, titled "Privacy," which you can see below. 

In Its Third Year, New York Magazine's Vulture Festival Is Bigger Than Ever

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For magazine publishers looking to recoup lost print dollars, live events are becoming increasingly important as independent revenue streams. Over the past several years, titles like Cosmopolitan, Sports Illustrated and Essence (to name a few) have joined live event veterans like The Atlantic and The New Yorker in debuting a slew of new consumer-facing conferences and festivals—and taking advantage of advertisers' desires to connect with culturally-savvy audiences.

One of the buzziest of these events is New York magazine's annual Vulture Festival, a spin-off of the media company's popular culture blog, which kicks off for the third time this weekend. The 2016 festival is nearly double the size of the previous two years, with 34 different events from screenings and live podcast tapings to interviews with showrunners (like Shonda Rhimes and David Chase) and actors (including the casts of Mr. Robot and Better Call Saul).

This also marks New York Media's largest advertiser push to date around the festival, which resulted in companies like DirecTV, TNT, Hulu, Citi and Casper all signing on to sponsor experiential activations, panels, parties, digital coverage and more.

"This was the first year that we've actually gone out there with a dedicated sponsor effort," said publisher Larry Burstein, who last year hired the company's first-ever director of sponsorship sales, Daniel Jasper, to help oversee the events business. "Because there's a lot about the festival that's new and different, we made the decision to move it away from the media value add for the first time," Burstein added.

DirecTV, a first time sponsor, saw the festival as an opportunity to expand awareness—especially among pop culture-savvy millennials—around its growing roster of original content and OTT subscription services.

         Craig Barritt/Getty Images for New York Magazine

"Vulture brings a different type of potential customer," explained Rob Stecklow, GM of sports and sponsorships for the AT&T/DirecTV Entertainment Group. "It's on the East Coast, whereas a lot of similar festivals we do are on the West Coast, and it's definitely what we perceive to be younger-skewing, more millennial."

In addition to sponsoring the festival's largest venue, Milk Studios, and hosting an opening night party, DirecTV will be offering free screenings of two of its original series, Kingdom and You, Me, Her.

Over at another venue, Highline Stages, is the Casper Podcast Lounge, where live recordings of shows like How Did This Get Made and Reply All will take place. In between events, attendees can try out mattresses from the online-only company, which happens to be a frequent podcast advertiser. (Casper will also, of course, have 100 percent share of voice around all podcast programming from the Vulture events.)

"As an online company, this gives us a way to be able to enter the conversation in a different medium," said Casper co-founder and CCO Luke Sherwin. "These festivals and other experiential activations help us build trust and credibility with people who are actually physically there, and then those people go and talk about that experience in a way that amplifies that credibility."

Looking ahead, Burstein plans to explore an expansion into more Vulture events—and perhaps even festivals outside of New York. "Vulture has really become its own brand outside of New York magazine," he said. "We see a lot of potential there."

Eli Manning Is Itching to Banana Dance and Karaoke With You in DirecTV's New Ads

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Would you rather rescue Dallas Cowboys quarterback Tony Romo from a burning building, or save half a sandwich for the long ride home?

Well, that probably depends on what kind of season Tony's having … and, frankly, on just how much you like your ham on rye.

"Romo vs. Sandwich" is just one absurd choice offered in Grey's amusing new ads that tout AT&T's DirecTV NFL Sunday Ticket platform for fans who want to catch every out-of-market NFL game:

Three silly spots breaking today contrast the "two potential YOUs this football season." In each case, Cable You is uncool and makes wimpy choices. On the other hand, DirecTV You is super coolsville and makes all the right moves.

DirecTV You would definitely pull Romo from the flames … and would also enjoy a night of karaoke with New York Giants QB Eli Manning:

And DirecTV You would absolutely help Indianapolis Colts QB Andrew Luck fish adorable puppies out of a well:

They look a lot like those Budweiser pups, don't they?

"The quarterbacks really get into the concepts we come up with and become very involved in the process," Valerie Vargas, AT&T vp, advertising and marketing communications, tells AdFreak.

Romo, Manning and Luck team up for this final spot, with Eli slipping into a banana costume:

"Eli was such a fan of the banana costume, it looks like he will be wearing it again for Halloween," Vargas says. "(And) Tony was hilarious when selecting his costume, as he really wanted to adhere to a 1980's Miami Vice aesthetic."

Romo's saxophone solo was appealing, n'est-ce pas? (Or, in keeping with the football theme, n'est-ce pass?) Maybe NFL Sunday Ticket crooner Lionel Richie—last spotted hanging out with Peyton Manning—should tap Tony to play at his next gig:

CREDITS:

Agency: Grey Group
Client: DirecTV
Vice President, Advertising: Valerie Vargas
Chief Creative Officer: Andreas Dahlqvist
Executive Creative Directors: Steve Fogel, Doug Fallon
Writer: Maddison Bradley
Art Director: Jon Robbins
Agency Executive Producer: Andrew Chinich
Agency Producer: Lindsay Myers
Agency Assistant Producer: Jake Wanamaker
Senior Vice President, Account Director: Elena Grasmann
Vice President, Account Director: Anna Pogosova
Senior Account Executive: Danielle Weiner
Agency Vice President, Senior Music Producer: Zachary Pollakoff

AT&T Consolidates Its Creative and Media Business with Omnicom

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Telecommunications giant AT&T consolidated its advertising business with Omnicom after a closed creative and media review that pitted the holding company against arch rival WPP. BBDO will retain the creative business, while the recently formed Hearts & Science unit will be media agency of record.

This review, which began in June, came nearly two years after the company entered talks to acquire DirecTV in a deal worth an estimated $50 billion. BBDO had been the incumbent agency on the AT&T business since 2007, and Grey served as agency of record for DirecTV since 2010. The two aforementioned agencies competed on the creative portion of the review while Hearts & Science, which officially began operations in April with America's largest single advertiser P&G as its flagship client, went up against WPP's MEC on the media side.

AT&T has a longstanding relationship with Omnicom, and last October the company hired former BBDO New York managing director Fiona Carter to fill the svp/head of brand marketing role.

"We've completed our comprehensive advertising agency review that combines creative, media, data and analytics under one entity," AT&T senior executive vice president and global marketing officer Lori Lee wrote in a statement. "We believe this integrated, best-in-class approach is the future for brands wanting breakthrough marketing innovation, quality and efficiency at scale."

The statement continued: "It was a thorough and thoughtful evaluation, and a tough decision because both firms presented outstanding ideas and both have done terrific work for us in the past. We thank them both for their efforts. We have selected Omnicom via its BBDO and Hearts & Science units to be AT&T's integrated creative and media agency."

This news marks a significant win for the Omnicom network. According to the most recent numbers from Kantar Media, AT&T and DirecTV combined to spend nearly $2 billion on measured media in the U.S. for all of 2015.

"By combining the resources of Hearts & Science and BBDO, we are extremely pleased to have won the business and look forward to continue working with AT&T to build an integrated creative, media, digital data and analytics team that can deliver the best in advertising and marketing ideas, execution and results," an Omnicom spokesperson told Adweek. "This is an opportunity like none other. AT&T is a unique, premier brand that is constantly innovating for its customers and we're privileged to expand our partnership with them. We look forward to developing breakthrough work with AT&T around their unique integrated capabilities to serve consumers and businesses."

A representative for Grey wrote, "We have had an amazing run on DIRECTV and been privileged to help grow that brand with years of award-winning campaigns that struck a chord in pop culture. We wish AT&T and their agency partners continued success."

The AT&T statement also thanked Grey and MEC for their work on the business: "We expect a smooth transition of the work to Omnicom will happen over the coming weeks. Like Omnicom, WPP is a world-class group and we appreciate their hard work and nine-year partnership."

Over the past few years, both creative shops created standout campaigns for their respective clients. For example, BBDO's "It Can Wait" AT&T PSA and Grey's quirky DirecTV campaign starring various versions of actor Rob Lowe both earned plaudits from the trade press.

5 Things You Should Know About Addressable Ads as More Dollars Shift to Digital

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The momentum behind addressable TV, delivering household-specific advertising based on an advertiser-defined target—regardless of programming or time of day in both live and playback modes—has reached an important inflection point for both consumers and brand marketers.

In a recent study we conducted with Adweek, leading marketers indicated that current TV buying (without addressability) isn't fully meeting marketing needs, and there is both frustration and a desire to reach relevant audiences more effectively. Nearly all respondents agreed that there is too much waste associated with TV and that traditional methods of measurement are outdated. As a result, over 80 percent of respondents are shifting TV dollars into digital for greater accountability and effectiveness. However, nearly all agree that TV would be more attractive, and stand as a better competitive option to digital, if they "could target more finely."

Rick Welday Alex Fine

But that is starting to change and I have a front row seat. With AT&T's acquisition of DirecTV in 2015, AT&T AdWorks has become the largest national addressable platform, offering addressable TV advertising across nearly 14 million DirecTV households out of the 25+ million combined DirecTV and U-verse TV households. Every day, I'm having interesting conversations about how valuable this advertising tool is for advertisers across all industries, as well as for consumers. But for those that haven't used it yet, there is still some confusion about what addressable advertising really is and why it's so compelling.

So in an effort to help clear things up, here are five things to know about addressable advertising.

Zero waste
In essence, addressable advertising turns the ad-buying model upside down. Instead of projecting what programs a particular audience will be watching, addressable advertising targets an audience regardless of what they're watching. Whether your target audience is watching TBS at 2 p.m. or ESPN at 10 p.m., they'll be served your ad. And it is served to your target whether they're a heavy or a light TV viewer because the ad finds the audience versus the old model of having the viewer come across the ad. And advertisers are only charged on impressions that are served to their target audience.

The proof is in the eCPM
Advertisers sometimes balk at the premium CPM for addressable advertising, but let's look at the math. With traditional linear TV, you may have a $10 CPM. When your ad airs, let's say that 25 percent of the viewing audience is within your target. That's an eCPM of $40. With addressable TV, you may pay a $30 CPM but it's much more efficient, since all of the impressions that are paid for are within your advertiser target. Think more bang for your buck.

Premium TV inventory
There's an overwhelming amount of advertising inventory out there, and the reality is that a lot of it is not so great. On top of that, advertisers don't always know that they're spending money for placement in remnant or user-generated inventory. Conversely, addressable TV is premium and transparent. Your addressable ads run during high-quality, live TV and VOD programming, and you're getting detailed reporting on exactly where your ads ran on a weekly basis.

You can measure ROI through the marketing funnel
What's the purpose of doing all this advertising if you're not sure that it's working? The ability to analyze and measure activity at all levels of the marketing funnel is something our clients get really excited about. They can see where their dollars are and aren't working, allowing them to optimize and modify future campaigns. Whether it's brand awareness lift, visits to a website/brick-and-mortar location or actual sales, addressable TV provides the end-to-end measurement and accountability advertisers are looking for in a privacy compliant way. No need to leave it to chance.

Addressable across screens
I believe addressable advertising has a benefit to the consumer. The average consumer is bombarded with advertising all day, but addressable gets at the goal providing more relevant marketing. Advertising really does work, and if you're reaching people at the right moment, the message can resonate more powerfully. There is tremendous opportunity in reaching the same consumers with messaging on their TV at home and on their phone while on the go: complementary messaging between TV and mobile channels, taking advantage of mobile functions like click to call, mobile coupons, location, etc.

Advertisers have long sought to couple the emotional impact and reach of television with the precision of direct marketing, and addressable TV is that long-sought-after hybrid solution, allowing advertisers the best of both worlds. Addressable TV is an efficient ad delivery system and continues to deliver hundreds of successful campaigns driving the future of advertising forward.

I'm really looking forward to being a part of this next phase of advertising innovation. It's an exciting time to be in the business in which genuine commercial and emotional connections are being made.

Rick Welday, president, AT&T AdWorks (@ATTAdworks), currently leads a $1.4 billion national ad sales business.


This story first appeared in the September 26, 2016 issue of Adweek magazine.
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AT&T and Hulu Share More Details About Their Upcoming Skinny Bundle Streaming Offerings

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Over the next several months, viewers are going to be more tempted than ever to cut the cord, thanks to a pair of anticipated new over-the-top (OTT), skinny bundle offerings from AT&T and Hulu.

Those two companies shared more details today about their upcoming services, targeting cord-cutters and cord-nevers, during an Advertising Week panel today about the future of OTT, moderated by Adweek TV and media editor Chris Ariens.

"The way people are watching, a la carte and on demand, is the way of the future," said Peter Naylor, Hulu's svp of advertising sales.

AT&T will launch its DirecTV-branded offering, DirecTV Now, later this year, as it tries to entice the 20 million households without a pay TV subscription. Subscribers will be able to stream more than 100 channels, without a long-term contract or any hardware like a set-top box, through their phones, tablets and connected TV devices like Roku.

"We had the opportunity to deliver this premium experience with a greater choice in flexibility," said Brad Bentley, evp of marketing, AT&T. "We have a chance to really customize and personalize the experience using data."

Given that AT&T already aggressively uses its set-top box data from cable and DirecTV for targeted advertising and to improve ROI for clients, the company is looking forward to the "individual addressability" opportunities that will be offered by DirecTV Now.

Hulu is also preparing its own skinny bundle of cable and network channels, which it will sell directly to consumers next year. "We're trying to take the best of what we like, and a generous dose of reinvention," said Naylor, adding that if the major content providers license their networks to most or all of these skinny bundle offerings,  audiences will gravitate to the service with the best "user experience."

One of the newest OTT offerings is Time Inc.'s ad-supported People/Entertainment Weekly Network (PEN), which launched two weeks ago. Response so far has been "fantastic," said Bruce Gersh, svp, strategy and business development for Time Inc. "Our advertising partners have really responded well."

Last week, when People rushed to put out a second issue after news broke of Brad Pitt and Angelina Jolie's split, PEN fast-tracked an 18-minute video about the couple that launched last Friday, the same day the Jolie-Pitt issue hit stands. "It just shows that there's excitement about the brand and the access we have," said Gersh.

One draw of OTT offerings like Hulu is that they offer a reduced ad load vs. linear. "You can't mirror the ad load of a conventional TV experience and expect people to watch," said Naylor.

And one year after Hulu launched an ad-free tier, priced at $11.99 per month, Naylor reiterated that "the majority" of new Hulu subscribers continue to opt for the $7.99 per month option, with ads. "We had the single biggest year in advertising the same year we introduced an ad-free service," he said. "But people want to be able to get what they want."

Time Inc.'s service also has a reduced ad load, with one 60-second ad pod every 60 minutes. "Consumers are responding really well to that," said Gersh. "They're staying and they're watching."

With all those new and upcoming OTT options, breaking through the clutter is harder than ever before. Content is "a real differentiator when you're trying to turn the heads of viewers," said Naylor. "We're all looking for that piece of content" to draw audiences, like HBO's Game of Thrones or Netflix's House of Cards. Agreed Gersh, "we believe at the end of the day, great content and well-known brands are going to win."

Content is king, but being able to monetize that content is just as important. Nielsen's total audience measurement rollout, set to be released by March, should help, though Naylor noted that connected TV devices, which represent 70 percent of Hulu's viewing, "is the least established environment for measurement. It's no small trick to get measurement right in this environment."

As the OTT world expands in the coming months and years, the players know that it will take some time for everything to shake out. "We are all going to experience a lot of churn as people sample and figure out what their right mix is going to be," said Naylor.

Why Marketers and Media Firms Are So Excited About Addressable Advertising

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With all the recent tech developments in TV and video like programmatic and over-the-top, addressability hasn't been getting many headlines. But during this relatively quiet period, the number of addressable homes across the TV landscape has surged to around 48 million, close to half of all wired homes in the U.S. And given that the first addressable ad was bought way back in 2003 and reached just a few thousand homes in the greater New York City area, the ability to deliver one-to-one advertising on TV has come a long way.

Adweek, along with partner AT&T AdWorks, convened a panel of experts to discuss the opportunities in advanced TV and video, and more specifically in addressable advertising. The roundtable discussion included Mike Bologna, president of GroupM's advanced TV unit, Modi Media; Ian Schafer, founder and chairman of Deep Focus; Tom Peyton, avp of marketing operations at American Honda; Francois Lee, evp and investment director with Assembly; Rob Norman, chief digital officer of GroupM; Lou Paskalis, svp, enterprise media planning, investment and measurement executive at Bank of America Merrill Lynch; and Rick Welday, president, AT&T AdWorks. 

This video features highlights from the conversation, which was held at AT&T's offices on Sept. 28.


AT&T Has Reached a Deal to Acquire Time Warner. Now What?

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After a report just two days ago that AT&T and Time Warner had engaged in "informal" talks about a possible merger, the two companies have reached a deal in which the telecommunications powerhouse will buy Time Warner for $107.50 per share, or about $85 billion, half in stock, half in cash. The deal was officially announced tonight in a video message from Time Warner CEO Jeff Bewkes. 

"The driving force," said Bewkes, "is not cost savings it's growth opportunity."

The new behemoth will combine Time Warner's hefty film and TV properties (including Warner Bros., HBO, TNT, TBS and CNN) and AT&T's robust broadband (U-Verse), wireless (AT&T) and satellite (DirecTV) offerings.

AT&T has a market capitalization of around $230 billion, while Time Warner is valued at $70 billion.

It's the biggest media merger since Comcast's acquisition of NBCUniversal in 2013.

After AT&T's unsuccessful attempt to acquire T-Mobile in 2011, the company shifted its focus to video, acquiring DirecTV last year for $48.5 billion.

As TV viewing habits have rapidly shifted in recent years, owning content is becoming even more important than distributing it, and AT&T CEO Randall Stephenson had been looking to add more original content. The Time Warner deal offers a variety of intriguing possibilities to entice cord cutters, cord shavers and cord nevers. Bewkes acknowledged as much tonight, saying it was a driving force behind a deal. 

"This combination is going to put us in an even stronger position to go where our audiences are going," he said. "Joining forces with AT&T gets us, and them, there faster and better than either of us could do on our own."

Assuming the deal withstands regulatory scrutiny, many questions surround the new company that comes out of the surprise megamerger. Here are three of the biggest:

How will the combined content portfolio be organized?

While Time Warner has the bulk of the film and TV properties, the new company will have to decide what to do about AT&T's Audience Network, which is available to DirecTV and U-Verse subscribers but offers many shows—like mixed-martial-arts drama Kingdom—that would seem right at home on the rebranded, grittier TNT.

Its various sports deals will also require attention. Turner has long-term rights to March Madness, NBA and MLB games, and had early talks with the NFL about this season's Thursday Night Football package, which was ultimately split between CBS and NBC. But the combined company also has DirecTV's lucrative NFL Sunday Ticket package. AT&T will have to determine whether those sports deals are more valuable separately—NFL Sunday Ticket is a major contributor to DirecTV's subscriber base—or together, where they power a sports network offering that could go head-to-head with ESPN.

AT&T might want to look at how Comcast successfully merged its own networks (E!, Golf Channel and what was then called Versus) into NBCUniversal's portfolio.

No matter how things shake out, Peter Chernin, who previously ran Fox Broadcasting, 20th Century Fox Television and Fox Filmed Entertainment, could take on a major role overseeing the combined companies' content operations, according to the Hollywood Reporter. In 2014, Chernin Group formed a joint venture with AT&T called Otter Media to create and acquire media and digital brands.

Will the company want dueling streaming skinny bundles?

The interest in over-the-top—or OTT—services has intensified as companies look to entice the 20 million U.S. households without a pay TV subscription. The new company will find itself with competing streaming services offering skinny bundles of network and cable channels, both of which are expected to launch within in the next several months. Time Warner bought a 10 percent stake in Hulu last August, and as part of that deal, the company's Turner portfolio of networks will be available on Hulu's new livestreaming service set to launch early next year.

But AT&T already has its own skinny-bundle streaming service coming by the end of 2016. Called DirecTV Now, its subscribers will be able to stream more than 100 channels without a long-term contract or any hardware (like a set-top box) on their phones, tablets and connected-TV devices like Roku. Will there be room for both services?

What huge deal is next?

Megamergers like AT&T and Time Warner's frequently send other media companies on shopping sprees to catch up, whether via friendly acquisition or hostile takeover. CBS Corp. and Viacom are already looking into recombining after the two split a decade ago.

But in the rush to keep pace with AT&T-Time Warner, other companies that could be in play now include 21st Century Fox (which made a failed $80 billion bid for Time Warner in 2014, when Time Warner said the $85-per-share offer was too low), Disney, Verizon (which made a $4.8 billion deal for Yahoo in July), Apple, Google and Amazon. Media companies like Netflix, Discovery Communications, AMC Networks and Scripps Networks Interactive should see a lot of interest for those potential buyers in the coming weeks and months.

AT&T Unveils Pricing and Channel Lineups for Its DirecTV Now Streaming Bundle

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Starting Wednesday, cord-nevers, cord shavers and cord cutters will have a relatively inexpensive, easy new option to access live TV.

AT&T finally unveiled pricing, channel lineups and more details about DirecTV Now, its over-the-top, streaming bundle service, which launches on Wednesday. The service, which doesn't require a set-top box, satellite dish, annual contract or credit checks, will debut with an introductory price of just $35 per month for more than 100 channels.

"This is the foundation of how we're going to do things in the future," John Stankey, CEO of AT&T Entertainment Group, told reporters who gathered at New York's Venue 57 for the product launch. He added, "For the first time in our history, we have control of the full stack," explaining that it will use data insights from subscribers to create more targeted advertising capabilities for brands, which will keep its pricing low.

With the launch, AT&T is targeting the 20 million-plus U.S. households that don't have cable or satellite service. "We get to address a new audience," said Stankey. "This opens up a whole new segment of the market." (Brad Bentley, evp and CMO at AT&T Entertainment Group, noted that market includes the "5-6 million people" who attempted to sign up for DirecTV but were unable to pass a credit check.)

And, the company hopes, it persuades even more subscribers to its "mobile-first" product to switch over to its wireless service. AT&T wireless subscribers will be able to use DirecTV Now without the streaming counting against their data plan.

While the service contains almost all of the country's biggest networks, there are a few major omissions. "The only thing missing is CBS and Showtime, which we are working on, actively," said Bentley. (The CW, which is also part of CBS Corp, is MIA as well.)

While "we're hopeful and optimistic" that AT&T and CBS will come to terms, Stankey noted, "the demographic may be a fit" for a CBS-less lineup—i.e., millennials don't watch CBS. However, they do watch The CW, which isn't available either.

And while subscribers in "owned and operated" markets like New York, Los Angeles and Philadelphia will be able to stream broadcast content live on NBC, ABC and Fox, those in smaller, affiliate markets will have to wait until the next day, when they can access network prime-time programming on demand. (The company said it is working with affiliates and hopes to expand its live offerings in the future.)

The service also doesn't include DirecTV's prized NFL Sunday Ticket package—Stankey said the company is in talks with the NFL—DVR capabilities (those are coming next year) or the ability to pause live TV. (However, many channels have "72 hour lookback" capabilities.)

While Stankey said that subscribers in owned and operated markets will be able to watch NFL games live on Fox and NBC, the feed will not be available to mobile subscribers in those markets, as Verizon retains exclusive NFL mobile streaming rights.

On Wednesday, DirecTV Now will be available via Amazon Fire (TV and TV stick) Android (mobile devices and tablets), iOS (iPhone, iPad, Apple TV), Chromecast (Android only; iOS will arrive in 2017) and Internet Explorer, Chrome and Safari web browsers. Next year, it will be available on Roku, Amazon Fire tablets and Samsung Smart TVs.

The company is offering four tiers of programming at launch: Live a Little (60-plus channels, for $35 per month), Just Right (80-plus channels for $50 per month), Go Big (100-plus channels for $60 per month) and Gotta Have It (120-plus channels for $70 per month).

As part of the launch, AT&T will sell its Go Big bundle with 100-plus channels for $35. When the price inevitably goes up, subscribers "will be grandfathered as long as they are a customer," said Brad Bentley, evp and CMO at AT&T Entertainment Group.

While DirecTV Now won't reveal the full channel lineups until Wednesday, it did share the following info: The Live a Little tier includes ABC, Fox, NBC, Fox News, ESPN, CNN, USA, AMC, FX, A&E, E!, Discovery, Disney Channel, TNT, TBS, Univision,  and Comedy Central, among others.

Just Right adds Yes, Big Ten Network, ESPNU, OWN, Travel Channel and IFC. Go Big has SundanceTV, BBC World News and Oxygen, while Gotta Have It adds Chiller, Cloo and the Starz Encore channels. (More complete channel lineups appear below.)

Subscribers to one of the base packages can add HBO or Cinemax for $5 extra per month, which is significantly cheaper than HBO Now or most cable subscriptions. But DirecTV Now won't offer the full breadth of HBO and Cinemax channels available through cable TV.

The subscription allows up to two streams simultaneously, but there is no access to 4K video. For that, AT&T says, subscribers should consider its "premium" services like regular DirecTV or its U-verse TV and internet service.

The company stressed that the product will evolve and add other capabilities like more second-language networks in the coming months. "This is just the start," said Enrique Rodriguez, evp and CTO at AT&T Entertainment Group. "We're going to continue enhancing this product and this platform."

That's especially true when it comes to advertising. AT&T will be using its AT&T Ad Works division to build what it calls a next-generation advertising platform using all the data insights it will receive from its customers. "We have to find smarter and better ways to deliver advertising" that limits ad load and is better targeted, said Bentley. "This is how we're going to keep pricing down."

"Our ability to personalize and target the advertising to every device is significantly higher than it has been in the past," said Rodriguez.

In addition to the Go Big price cut, AT&T is giving customers several other incentives to try the new service. Customers who prepay three months of any DirecTV Now package can receive a free Apple TV. Those who prepay one month of any package can receive an Amazon Fire TV Stick with Alexa Voice Remote included. LeEco will offer between three and 12 months of DirecTV Now service with the purchase of select smartphones and TVs.

If the free gear isn't enough, AT&T is partnering with two big stars—Taylor Swift and Reese Witherspoon—for new channels, which will be available exclusively on DirecTV Now and AT&T's other platforms. Taylor Swift Now, featuring content that is curated by the singer, including concert and behind-the-scenes footage, will debut  by year's end. And Witherspoon's production company, Hello Sunshine, will launch a VOD channel next year focusing on positive and inspiring content for women.

DirecTV Now's interface seems more like Netflix or Hulu than a traditional cable network's guide, allowing viewers to browse recently watched programs and curated offerings. "It doesn't take you into a linear guide. It takes you into the things that matter most," said Bentley. However, a guide is available for those who prefer one. The result is "a much more personalized television experience than what you get today in linear TV," according to Bentley.

While AT&T isn't saying publicly how many DirecTV Now subscribers it's targeting, Stankey said the company has three goals: customer growth, especially among what he called the "underpenetrated" segments; "happy customers;" and enticing subscribers to also sample AT&T broadband and wireless products. "We don't want them to have a product from AT&T, we want them to have two products from AT&T," he said.

 

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