AT&T and The Chernin Group – which, if you’re not familiar, manages and invests in media businesses around the world – has just announced the formation of a venture to acquire, invest in and launch over-the-top (OTT) video services.
The Chernin Group and AT&T have committed over $500 million in funding to the venture.
This alliance positions AT&T and The Chernin Group to take advantage of the rapid growth of online video and OTT video services, with each party bringing significant and complementary strengths. The strategic goal of this initiative will be to invest in advertising and subscription VOD channels as well as streaming services.
“AT&T and The Chernin Group are combining our skill sets to address the growing consumer demand for accessing content how and when they want it,” says 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.”