The broadband industry looks set to get a super-fast competitor staking a claim to market domination in the form of AT&T’s expanding ‘GigaPower’ brand, and a perfect compliment to such a statement of intent would most likely be a streaming service to showcase what can be done with such signals, and while that is indeed what the company have confirmed (in not so many words), this week the pair of semi-connected moves were announced in reverse order.
The telecommunications giants have suggested that it will be an ambitious new service that they launch in an attempt to compete with the likes of Netflix, offering a subscription streaming platform in co-operation with ex-News Corporation president Peter Chernin to provide ‘over-the-top video services’.
While no firm details have been confirmed, it is believed that the partners (AT&T and media investment firm The Chernin Group) have committed around $500m to making such a service work.
Such funding for the proposed venture would be invested in supplying both ‘video-on-demand channels’ and generalized streaming services, with those in charge undecided as to whether they could try to make money from the subscription route a la Netflix, advertising in the manner of YouTube, or by letting consumers decide between the options as Hulu does.
Believed to be the next step in am AT&T/Chernin collaboration which first saw them attempt to make a joint purchase of Hulu, the interest in streaming from the two parties is clear, and may potentially head in the direction of The Chernin Group’s existing operations, namely following on from their stake in anime specialist site Crunchyroll by offering more niche video websites.
In a statement on the matter, Chernin summarised: “Consumers are increasingly viewing video content on their phones, tablets, computers, game consoles and connected TVs on mobile and broadband networks.”
With the potential to incorporate a video service into existing cable, telecommunications, or future giga-broadband deals, the AT&T and Chernin Group partnership could be one with a strong foundation given their financial clout, but will it be able to deliver where other aspiring Netflix-beaters have failed?