AT&T creates $500M TV service

AT&T creates $500M joint venture for a Netflix-style TV service

AT&T, America’s second largest broadband provider and wireless company, is getting into the streaming business with a $500 million joint venture created to acquire, invest in and launch a Netflix-style video streaming service. As the television distribution model that’s been in place for decades collapses online, this deal marks the first time a big U.S. ISP has decided to go over the top with a TV service.

AT&T has joined forces with media and entertainment company the Chernin Group, and together the two companies have committed $500 million in funding to the venture. However, the Chernin Group will bring assets to the venture, including the contribution of its majority stake in Crunchyroll, a subscription video on demand service.

This is a massive move by AT&T towards content and is in line with this structural shift blog from a few days ago.

I think we’ll begin to see more of these moves as a means of diluting the share of wallet from OTT players. I think this is especially true for bandwidth hungry services like streaming video where traditional CSPs have control over traffic prioritisation over their own networks (unlike the OTT players).

Is content delivery software part of what you consider to be an OSS? Can your solution pull analytics from streaming video to extract valuable information? If not, I’m sure you’ll be able to analyse interactions with content (eg number of times played, watched in entirety, genres selected, etc).

What are your revenue models from content (eg subscription, advertising, analytics, service bundling, etc) and how does that impact your BSS and billing services?

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