AT&T unveiled a new version of its streaming service DirecTV Now with more features, including cloud DVR, the company's chief executive announced at an investor conference in Boston early Tuesday.

The company's chief executive Randall Stephenson said by end of year, the Dallas-based telecom company will offer three distinct streaming services with different bundles of channels and price points that range from $15 to $90 per month. He said it's all part of a business strategy to change the world of video.

"Our objective is straightforward," he said. "We want to transform how video is distributed, how video is monetized or paid for, how video is consumed and how video is created," he said.

The latest iteration of DirecTV Now, which will launch Tuesday, has a new look and offers new on-demand content. Consumers can record shows on a cloud DVR and fast-forward or rewind recorded content. They can add a third stream that can be watched at the same time and additional DVR space for an upcharge. The company will initially charge a discounted price of $40 per month, Stephenson said.

Stephenson made the announcement Tuesday at the J.P. Morgan Global Technology, Media and Communications Conference. He spoke about AT&T's entertainment plans as the company awaits a court ruling that will decide whether it becomes owner of Time Warner. Time Warner's large and valuable portfolio of TV and movie content, such as HBO, CNN and Warner Bros., is central to AT&T's strategy. The merger is valued at nearly $109 billion, including debt.

The Justice Department sued to block the merger, saying it would hurt competitors and drive up prices for consumers. A ruling is expected by June 12.

And Stephenson said Tuesday that AT&T isn't done with its buying spree. He said it will likely make another acquisition to build up and roll out an advertising platform that serves up targeted ads for the new streaming services.

AT&T is the largest pay-TV company in the country with about 24 million U-verse and DirecTV customers. But like other cable and satellite TV companies, it has seen consumers flock to cheaper, internet-based TV options, such as Netflix, Hulu and Dish's Sling TV.

It responded in fall 2016 by launching its own streaming service: DirecTV Now. The streaming service has grown to about 1.5 million subscribers.

Stephenson said AT&T will launch a premium streaming service in the fourth quarter. It will have a lineup that is similar to DirecTV, but without the satellite dish and installation costs. He said it will cost about $80 to $90 a month versus the $100 to $200 a month for satellite TV.

"The only truck roll required is going to be a UPS truck to deliver a very thin piece of hardware that you plug in to your TV and your broadband outlet," he said.

Compared to cable or satellite, the streaming service has thin margins. AT&T has cut into that further by offering promotional pricing.

Stephenson said that will change over time, as AT&T offers a premium product and saves on the costs of installation. Once the Time Warner merger is approved, he said, AT&T will launch a new advertising platform that turns consumer data and analytics into targeted ads, which are more lucrative.