The company plans to offer a streaming videos that can be viewed on a smaller screen, or to a single screen in a home that's not set-top box-driven, Stephenson added.
The online video market is a competitive space with established players such as Netflix and Dish Network and new entrants like Verizon Communications rushing to service viewers who consume video on mobile devices.
With the $48.5 billion purchase of satellite TV operator DirecTV in July,
AT&T is already the No. 1 U.S. pay-TV company with over 26 million U.S. subscribers, following the recent acqusition of satellite TV operator DirecTV.