AT&T to invest in OTT video business
AT&T has announced plans to invest $500 million into a new venture that will aim to launch over-the-top video services.
AT&T has partnered with the Chernin Group, a company that manages and invests in media businesses to develop video services.
The companies are expected to invest in video-on-demand (VOD) and streaming services that earn revenue from subscriptions and advertising through broadband connectivity.
“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,” said John Stankey, CSO at AT&T.
“Combining our expertise in network infrastructure, mobile, broadband and video with the Chernin Group’s management and expertise in content, distribution, and monetisation models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”
The Chernin Group already owns a majority stake in anime content company Crunchyroll and will look to also integrate this with its new VOD launch.
“A critical part of the Chernin Group’s strategy has been our significant focus on the online video industry, and joining forces with AT&T only further underscores our strategic commitment in this area as operators, investors and programmers,” said Peter Chernin, chairman and CEO, at the Chernin Group.
Further financial terms of the deal were not disclosed.