AT&T and Fox Networks Group, a unit of 21st Century Fox, agreed to extend their programming-licensing agreement to cover DirecTV Now, a $35-a-month live TV streaming service set to launch this month.
The new pact means AT&T can offer Fox News, Fox Business, FX, FXX and several Fox sports channels to subscribers of both DirecTV and DirecTV Now, according to a statement Monday.
The agreement doesn't include programming from the flagship Fox Broadcasting network, but the companies said they have "agreed on a framework" to continue discussions for local broadcasting rights.
AT&T, which is buying Time Warner for $85.4 billion, plans to unveil its 100-channel DirecTV Now this month as a response to online-only TV competitors like Netflix and Amazon, which have been luring its customers away with lower-priced alternatives. The service is priced to compete with two leading online-TV providers -- Sony's PlayStation Vue and Dish Network Corp.'s Sling TV.
CBS is the only big broadcast network that hasn't announced a programming deal with DirecTV Now.
-- Bloomberg News