AT&T Plays It Forward
When a corporate behemoth backs a loss-leader, anything can happen.
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AT&T Inc. is willing to take a financial hit to get its new online TV service, DirecTV Now, off the ground next week -- part of a gambit to win over Washington regulators while also positioning itself as a trend-setter that can shape the future of digital video.
AT&T is selling its online bundle of more than 100 TV channels that will cost subscribers $35 a month. After subtracting the costs to buy programming from 21 Century Fox, Disney and others, that leaves AT&T with only about $1.32 of revenue from each subscriber, according to estimates by research firm MoffettNathanson LLC.1479916252006