AT&T prepping DirecTV to enter crowded online video marketplace

ATT Inc. said it will start offering a version of its DirecTV satellite service over the Internet later this year, but the nation’s largest pay-TV provider disclosed few details of the plan.

The new service, coming in the fourth quarter, would let users stream programming over the Web, or “over the top,” without the need for a satellite dish.

ATT

T, +0.58%

 also plans to sell a version of the service for mobile devices and a separate, free ad-supported streaming service.

ATT doesn’t plan to disclose pricing and content — the two factors that will determine the service’s success in the marketplace — until closer to launch.

The company is entering a crowded field that includes giants like Netflix Inc.

NFLX, -1.21%

Hulu LLC and Alphabet Inc.’s

GOOG, -0.36%

 YouTube. Offering an online package of traditional TV channels is especially challenging. Sony Corp.

SNE, +1.80%

 and DirecTV rival Dish Network Corp.

DISH, -0.13%

 each launched such services last year.

An expanded version of this article is available at WSJ.com

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