AT&T has stated that the new online video service forms part of its strategy to deliver content across three screens – TVs, PCs and mobile handsets. But the development of a standalone video service is a markedly different approach to the latest multi-platform ambitions of other Pay TV providers.

Time Warner Cable, Comcast and Verizon have all announced trials of TV Everywhere – an initiative which allows each company's pay TV subscribers to watch on demand videos through the PC. The TV Everywhere model leverages the appeal of on demand catch-up TV to increase the perceived value of a user's pay TV subscription. By placing online videos behind an authentication wall the three operators will be able to limit availability to their respective subscriber bases.

AT&T has chosen to launch a service which is open to all users. It is unlikely that AT&T's subscriber base will see the ability to access peripheral features on the AT&T Entertainment site as a significant value-add when compared to the extensive video library provided to subscribers of the three operators participating in TV Everywhere. However, the roll out of AT&T Entertainment does not preclude the development of a TV Everywhere proposition from the telco, which could allow its U-Verse IPTV subscribers to watch some of its premium pay TV content online.

AT&T Entertainment is a Hulu affiliate and a member of the CBS Audience Network, allowing the telco to provide catch-up from the major networks. However, this may not be a compelling enough reason for users to visit the site. Many of the shows and movies available through AT&T Entertainment will also be distributed through other online outlets on an ad-supported basis - for example, AOL, MSN and Comcast's Fancast website are all partners of both video platforms, allowing them to deliver a large amount of the same content as AT&T.