The telco, looking to win over customers disinclined to pay for a full lineup of cable channels, is pitching a stripped-down package that includes HBO, Amazon Prime Instant Video, broadband and broadcast networks for just $39 per month — well below what pay-TV subs typically shell out for service bundles.
The telco’s the new $39 bundle includes U-basic TV, HBO and HBO Go, U-verse Internet Max Plus (which provides up to 18 megabits per second downstream), as well as one free year of Amazon Prime. Customers must sign up for a 12-month contract, after which standard rates will apply. Note that it’s available only in areas where AT&T has launched U-verse.
But AT&T’s bundle appears to be the first to include one year of Amazon’s Prime, normally $99 per year in the U.S., as part of the deal. Prime provides free shipping on millions of Amazon products as well as access to the Prime Instant Video service.
The bundle “allows customers to benefit from significant savings, the ability to watch popular content across their devices and surf with faster broadband speeds,” AT&T said in a statement.
In addition, AT&T kicked off a trial bundle — available only for U-verse Internet customers — dispensing with TV altogether that combines broadband and a free year of Amazon Prime. The telco is offering that package, which starts at $29.95 per month, in Atlanta, Chicago, Houston and San Francisco.
It’s worth noting that Amazon has a multiyear-deal with HBO, under which the e-commerce company’s Prime Instant Video is the the exclusive online-based subscription VOD service to offer full seasons of original series (older than three years) including “The Sopranos” and “The Wire.” That deal marked the first time HBO licensed its content to an online-only subscription streaming service.
According to AT&T’s website, the special offer ends Dec. 13, 2014, and is available only to new residential U-verse customers who order online. The pricing does not include regulatory fees or a “broadcast TV surcharge,” while it also carries a $49 activation fee.
The U-verse Internet service is capped at 250 gigabytes of data usage per month. Customers who use more than that are subject to $10 per additional 50 GB of usage.
News of AT&T’s broadband/HBO/Amazon Prime bundle, which the telco began marketing Monday, was reported earlier by DSLReports.