AT&T Weighing A DirecTV Rebrand, Future of OTT Transition

AT&T CEO Randall Stephenson said the company has placed DirecTV's name under review. "We haven't decided yet how we are going to brand it," he said. "We're testing the DirecTV brand and the AT&T brand, so we're doing a lot of thinking." He was also flippant about the position the company will take on over the top video.

Stephenson said it was "inevitable" that the traditional "bundle" of cable television channels will crumble as more content travels "over the top" to customers via the Internet. He said he wanted AT&T to be part of that transition and was fully prepared for erosion of the DirecTV customer base over time. "We will go hard at 'over the top' and will invest in the tech platform and content," he said, adding that AT&T has weathered such transitions repeatedly during his time at the company. "We build this into our models. I've gone through these transitions more than I can count. They all look the same. The new stuff grows really fast, and margins get compressed. Once you have 30% penetration, you can get your cost structures in line and then ride the growth curve."