Has AT&T Unleashed a Netflix Killer?

AT&T (NYSE:T) announced Monday morning that has a contribution for the video streaming world, but Netflix (NASDAQ:NFLX) need not worry about new competition. As AllThingsD contributor Peter Kafka wrote upon hearing the news, the company’s U-verse Screen Pack is “positively not a Netflix killer.”

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Screen Pack’s relatively small content library stocked with older titles from Sony (NYSE:SNE) and MGM makes AT&T’s new service more comparable to Comcast’s (NASDAQ:CMCSA) Streampix than to Netflix. Like Streampix, it is priced at $5 per month and doesn’t come close to matching Netflix’s catalog of television shows and movies. In response to a question posed by Kafka, a spokesperson from AT&T gave these titles as an example of the service’s offerings: “American Teacher, Assassin’s Code, Charlie’s Angels, Summer in Genoa, Lars and the Real Girl, Rudy, The Wedding Planner, Hotel Rwanda, Legends of the Fall, Snatch and more.”

So far, Comcast’s Streampix hasn’t noticeably eaten into Netflix’s market share and Screen Pack is not expected to have much of an impact either. Instead, the service is seen as a means for AT&T to sell its service nationwide and keep existing customers. To further develop Screen Pack into a retention device for its pay-TV users, the company has added new media-sharing applications for U-verse as well as a home security and automation service called Digital Life, which is based on a control panel developed by Cisco (NASDAQ:CSCO).

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