AT&T’s WarnerMedia might be punting on its original streaming service plansJune 6, 2019
WarnerMedia’s plans for a three-tiered streaming service appear to be in flux. The AT&T-owned company is reportedly scrapping that idea and opting instead to offer HBO, Cinemax and the library of Warner Bros. content in a single subscription service that would cost between $16 and $17 a month, The Wall Street Journal reported, citing unnamed sources.
The service would first be offered as a beta product later this year and could be offered broadly as early as next March.
TechCrunch will update the article if WarnerMedia responds to a request for comment.
This latest development follows a number of changes over at WarnerMedia, including the departure of HBO CEO Richard Pleper and Turner president David Levy.
Former NBC Entertainment chairman Bob Greenblatt has joined as chairman of WarnerMedia Entertainment and Direct-to-Consumer, putting him in charge of HBO, TBS, truTV and the WarnerMedia streaming service.
AT&T first opened up in November about its plans for its WarnerMedia streaming service. The company said at the time that the service would have three tiers — an entry-level, movie-focused service; a premium tier with original programming and blockbusters; and a bundle that includes them both.
During an earnings call a few months later, AT&T CEO Randall Stephenson expounded on the service and said it would have a “two-sided business model.” The idea was to include subscription-based, commercial-free programming on the high-end as well as an entry-level portion of the service that will be ad-supported, according to the Stephenson’s comments at the time.
Whatever the structure ultimately ends up being, the aim is to leverage the entertainment properties AT&T gained by way of its Time Warner acquisition last year.