AT&T, one of the largest mobile operators in the US, intends to launch its own streaming service next year to compete with Netflix and Walt Disney.
The intention is not surprising since the operator acquired Time Warner at the beginning of the year. Part of the transaction was the TV channel HBO, which will be tied to the service. AT&T is expected to launch its streaming service in the fourth quarter of 2019.
A similar direct service for consumers could benefit from WarnerMedia’s vast list for movies, TV shows, documentaries and animations. Media companies are trying to offer more direct services in response to lower subscriptions for cable service. AT&T, which completed Time Warner’s acquisition in June, is also looking to pay off the 85 billion USD investment faster.
The CEO of AT&T, Randall Stephenson, said last month that the streaming product would be announced this quarter. The new service will be primarily fun. CNN’s news will not be part of it.
At a press conference, the CEO of WarnerMedia John Stankey said the company had “years of accumulated investment” in its database. He added that the market can support more than two streaming services, albeit less than 10. AT&T will run its streaming service at 7.99 USD.