AT&T, Verizon expand wireless video services

AT&Tannounced a deal with Hulu to bring the over-the-top (OTT) streaming subscription service to the telecom’s wireless customers.  AsTelecompetitor notes, the deal offers AT&T wireless customers more content while exploring the potential of wireless streaming services:

For now the deal doesn’t include putting Hulu on AT&T’s U-Verse platform. Instead the deal appears more mobile-focused, with customers gaining the ability to watch Hulu programs on mobile devices through an AT&T app. Customers also can watch on AT&T’s website over a broadband connection. But the announcement also notes that AT&T and Hulu are “exploring the possibility of bringing a Hulu app to TV.”

The announcement comes days afterVerizon struck a deal to buy AOL for $4.4 billion. Verizon gained web properties and services for automating digital advertisements. The deal is further proof that Verizon aims to be at the forefront of the growing wireless video streaming sector.

These deals are responses to changes in video viewing preferences. OTT streaming services – think Netflix and YouTube, both of which can be viewed wirelessly – are supplementing or replacing traditional cable video services.  USA Today is calling it “The Battle for the Living Room,” and it’s just begun:

Although many tend to think of the Internet as the place to surf the web, a vast majority of Internet traffic is dedicated to delivering video. While we love all things Internet, it seems we love all things video a lot more. A TECHnalysis Research survey on U.S. consumer activities shows we still spend about twice as much time watching video as we do browsing, updating our social networking status, and so on.

As a result of all these developments, we've seen a lot of big shifts by tech and telco companies lately to position themselves for the upcoming changes in TV viewing and the subsequent change in viewers' spending habits many are expecting.

AT&T to Offer Hulu Subscriptions Streaming Service to AT&T Customers (AT&T, May 13, 2015)

AT&T-Hulu Deal Brings OTT Video to Mobile and Broadband (Telecompetitor, May 13, 2015)

Verizon strikes deal to buy AOL (Speed Matters, May 18, 2015)

The Battle for the Living Room (USA Today, May 14, 2015)