AT&T is teaming with The Chernin Group to invest in and launch over-the-top (OTT) video services. The two companies have committed more than $500 million to the joint venture.
AT&T and The Chernin Group will invest in advertising and subscription video-on-demand (VOD) channels, as well as streaming services.
"[We] are combining our skill sets to address the growing consumer demand for accessing content how and when they want it," said John Stankey, chief strategy officer 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 monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space."
The Chernin Group has a majority stake in Crunchyroll, a leading subscription video on demand service, which it will bring to the joint venture.
“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, The Chernin Group. “Consumers are increasingly viewing video content on their phones, tablets, computers, game consoles and connected TVs on mobile and broadband networks. 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."
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