DirecTV Now will feature a $35 per month plan including over 60 channels, and a $70 per month plan that includes over 120 channels. The service will be available on mobile platforms including phones, tablets, laptops and Apple TV streaming devices.
However, "I'm not as certain that this thing is the game changer," TheStreet's Jim Cramer said on CNBC's "Squawk on the Street" Tuesday.
Cramer said persuading someone to shift to this new platform will be difficult to accomplish. For instance, "I was very surprised to see CBS (CBS) [programming is] not in it," Cramer noted.
This is going to anger fans of the National Football League who watch American Football Conference games on CBS. In addition, Cramer said these are expensive packages for potential younger customers.
While Cramer acknowledged that within the next decade most people will access television through the Internet, right now he questions the popularity of these packages. "I feel like to some degree right now it is the early bird special," Cramer said.
Shares of AT&T were flat Tuesday.
(AT&T stock is held in the Dividend Stock Advisor portfolio. See all of the holdings with a free trial.)
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 B. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. 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.