NEW YORK (TheStreet) --AT&T (T) - Get Report and HBO have reached a partnership agreement that will allow customers to access live HBO with their DirecTV Now streaming service.

"Thanks to this new deal when AT&T launches its new DirecTV streaming service consumers will be able to get live HBO, ESPN, and other channels on their phones at a fraction of a price of a traditional TV bundle," CNBC's Julia Boorstin reported on Monday morning's "Squawk Alley."

Additionally, earlier this month AT&T announced that it would also be incorporating all of Disney's (DIS) major networks into its DirecTV Now service, indicating the service, launching in the fourth quarter, will have top-tier content, Boorstin noted.

DirecTV has said its service will boast over 100 channels and will work as an app so no set-top box, nor contract requirements will be involved.

"The company has yet to announce an official price, but a source close to the company tells me it will be priced in the same range as Hulu's upcoming product which is expected to start at around $35 [per] month," Boorstin said.

Moreover, Pacific Crest Securities projects that this offering will accelerate the number of DirecTV subscribers.

"When DirecTV Now launches it will prove new competition for the higher-cost TV bundles, as well for smaller skinny TV bundles like Dish's SlingTV, and Verizon's customer TV Fios packages," Boorstin concluded.

Shares of AT&T were higher during late-morning trading on Monday.

(AT&T is a holding in David Peltier's Dividend Stock Advisor.)

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate AT&T INC as a Buy with a ratings score of A+. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: T

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