AT&T stock was up on Friday following news that the company is planning to launch a streaming service.
According to this recent news, AT&T (NYSE:T) is looking to release a streaming service through WarnerMedia. The idea is that this allows the company to directly interact with its already large customers base by offering them streaming options.
AT&T says that the streaming service from WarnerMedia will include three tiers of content. The first tier will focus on delivering movies to customers. Moving up to the second tier will offer customers blockbuster movies and original programming. The final tier of the service includes all the content from the first two, as well as extra content licensed to WarnerMedia.
AT&T notes that this new streaming service will use a subscription video on demand (SVOD) business model. However, it notes that it may offer a similar service in the future that is supported by advertisements.
So when exactly is AT&T planning for this streaming service to launch? It looks like WarnerMedia is looking to launch a beta version of the service during the fourth quarter of 2019. It’s unknown when the full version will become available to customers. Any ad supported version likely won’t launch until after this one.
“The SVOD service will complement WarnerMedia’s existing business; benefit its current distribution partners; expand the audience and increase engagement around its content; and provide data and analytics to inform new products and better monetize content,” AT&T said in a press release.
T stock was up 2% as of Friday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.