AT&T and The Chernin Group plan to take on Netflix with $500m partnership
AT&T and The Chernin Group are looking to join the likes of Netflix, Amazon and Hulu after partnering for a $500m investment in video streaming services.
The pair initially came together last year when they put in a joint bid for Hulu.
Full details of the planned offering have not yet been disclosed but the intention is to “acquire, invest in and launch” services, although further details of the acquisition strategy have not been given.
”AT&T and The Chernin Group are combining our skill sets to address the growing consumer demand for accessing content how and when they want it,” explained John Stankey, AT&T’s chief strategy officer.
“Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group’s management and expertise in content, distribution and monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”
Commercially, the intention is to invest in both ad-supported and subscription-based VOD channels as well as streaming services.
Peter Chernin, chairman and CEO of Chernin Group, added: “AT&T’s massive reach on those platforms across mobile and broadband and their commitment to the online video space make them the perfect fit for this venture with us.”
Under the terms of the deal, the Chernin Group has offered its majority stake in Crunchyroll, a subscription VOD service.