AT&T is creating a $500-million Netflix-style streaming service that marks the first time a U.S. Internet service provider is getting into the OTT game.
The joint venture with The Chernin Group will create TV and other media content, although the company was light on details about exactly what that content would look like.
‘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,” said Peter Chernin, Chairman and CEO, The Chernin Group in a release.
More detailed financial terms were not disclosed.
Read More: GigaOm
Brief Take: If AT&T gets this right, customers might ditch their ISPs—and those expensive bundles—for AT&T’s offering.
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