AT&T is doing exactly what it told Congress it wouldn't do with Time Warner
Source: Ars Technica
AT&T's decision to prevent Time Warner-owned shows from streaming on Netflix and other non-AT&T services reduced the company's quarterly revenue by $1.2 billion, a sacrifice that AT&T is making to give its planned HBO Max service more exclusive content. AT&T took the $1.2-billion hit despite previously telling Congress that it would not restrict distribution of Time Warner content, claiming that would be "irrational business behavior."
AT&T's actual Q4 2019 revenue was $46.8 billion, but the company said it would have been $48 billion if not for "HBO Max investments in the form of foregone WarnerMedia content licensing revenues."
An AT&T spokesperson told Ars that the $1.2 billion in lost revenue was primarily caused by the decision "not to sell existing contentmainly Friends, The Big Bang Theory, and Fresh Princeto third parties such as Netflix." As we've previously reported, AT&T took Time Warner shows off Netflix in order to give the exclusive streaming rights to AT&T's HBO Max, which is scheduled to debut in May 2020 for $14.99 a month.
"We made the strategic decision to give HBO Max exclusive streaming rights for top programs, including Friends, Big Bang Theory, and other popular shows. In the past, we would have sold these externally," AT&T CFO John Stephens said in an earnings call.
Read more: https://arstechnica.com/information-technology/2020/02/att-lost-1-2b-by-preventing-time-warner-shows-from-airing-on-netflix/?comments=1&post=38619301
Response to jayfish (Original post)
benld74 This message was self-deleted by its author.
IronLionZion
(45,380 posts)Didn't know HBO was so hard up for subscribers they've resorted to showing old reruns of network TV sitcoms. I guess it's cheaper than shooting more dragon shows.
cstanleytech
(26,248 posts)people cancelling their DirecTV as people cut the cord for online streaming services.
That is the reason they are doing this even though it goes entirely in the face of what they claimed they would do should the merger be approved.
In fact the higher ups are being pressured by shareholders to cut their losses and sell or spin off DirecTV.
Auggie
(31,133 posts)they'll only fuck you over.