AT&T is picking up OTT streaming services vendor Quickplay, which it plans on using for the launch of three of its over-the-top DirecTV services this year.
The addition of Quickplay gives AT&T Inc. (NYSE: T) a content delivery leg that will work in conjunction with its video content and existing network. AT&T will use Quickplay as the foundation of its DirecTV Now, DirecTV Mobile and DirecTV Preview OTT services. (See AT&T Intros New OTT Video Services.)
AT&T hasn't said when it will launch the DirecTV OTT services this year, but they'll compete with Dish Network's Sling TV, Sony's Playstation Vue and Verizon's Go90 while Hulu has announced a plan to roll out a "skinny" bundle. (See AT&T Intros New OTT Video Services and Sony Extends Reach of OTT Service Across the US.)
"AT&T has been a longtime customer of Quickplay," said Joel Espelien, senior analyst for The Diffusion Group. "They have been powering AT&T U-verse live TVE channels for years. This is a straightforward vertical integration play by taking out a supplier."
Toronto-based Quickplay said it delivers more than 700 live video channels and 4,000 live events annually. In addition to AT&T, its customer roster includes Rogers Communications, Verizon Wireless, Vodafone and Telus.
The deal needs to clear the usual regulatory approvals in the US and Canada, but is expected to close by mid-year. Financial terms of the acquisition weren't provided.
— Mike Robuck, Editor, Telco Transformation