AT&T®’s attempt to purchase Time Warner was withheld as a result of regulatory review stemming from fears over excessive market power that would rest with the entity. Investors might have believed that the company had an alternative solution for this plan, but it has been unable to put an end to the rise of its major competitor in the form of Netflix. It has been reported that the company is planning to launch new strategies as a way to face this situation. The latest WarnerMedia option for streaming is projected to be more complicated than the previous versions. This, according to many, is a sign that AT&T® is preparing itself to face certain realities.
The latest streaming service will cost users $16 to $17 per month. This is higher than a Netflix subscription which would cost you $12.99 per month and lower than the combination of Disney and Hulu which costs $19 per month. This offering will comprise of Cinemax, HBO, and the large content library that belongs to Time Warner. This library is said to have more content than any other in existence. This plan is planned for release the coming year.
WarnerMedia wanted a tiered system because of the diverse natured content available with it. This meant that it would not be able to share all the content under a single platform. Besides, this would also affect profits. However, it is a distant possibility that a customer would be interested in a three-tier option.
Distributors Opinion
There are said to be consequences to a single option provided by one of the cheap cable operators of the country. The cable partners of the company offer HBO as a standalone service. They will not be happy with the latest offering by WarnerMedia. It is true that the satellite and cable distributors were affected by the cord-cutting moves. They continue to generate more business for the content of WarnerMedia.
There are several doubts regarding whether the new streaming service would be able to generate as much profit as the old one where Turner, Warner Bros, and HBO were sold separately. One of the top cable providers in the country has admitted committing a mistake in the past regarding the acquisition of satellite cable company DirectTV. The company is reportedly trying to bring Dish Network and DirectTV satellite TV unit together. This might be accompanied by the admission that satellite technology is at a loss in the era of cord cutting.
