NEW YORK (AP) — AT&T and an investment firm run by former News Corp. executive Peter Chernin have formed an online video venture that could rival Netflix and Hulu.
AT&T Inc. and Chernin Group said Tuesday that they have committed more than $500 million in funding toward the venture. They are not saying how much each company is investing.
The move comes amid rapid growth in online video services. AT&T, a telecoms giant, already offers TV content through its U-Verse service, which competes with more traditional cable TV providers. With online video, though, it could attract customers of Netflix, Hulu, YouTube and other services — including people who've stopped paying for traditional broadcast, cable or satellite TV.
The companies said the venture will invest in advertising and subscription-based video-on-demand services, as well as online streaming.
AT&T rival Verizon Communications Inc. is planning similar services. The telecommunications giant bought Intel Media earlier this year. The onetime division of chip maker Intel Corp. had been preparing to launch a service that streams TV channels over the Internet.