After its purchase of Time Warner, AT&T is planning to bring streaming video service into the marketplace to rival Netflix. The new service has not yet been named or priced and is expected to launch in the Q4 of 2019. It is said to build a direct–to– consumer product that centers HBO, a premium cable and satellite television network, to try to keep up with Netflix and Amazon.com Inc. It is not surprising that AT&T wants to launch such service as more consumers are abandoning their traditional pay-TV subscriptions and subscription to streaming video services such as Netflix.
Although AT&T is unlikely to pull off all third-party services like Netflix because they helped to boost Time Warner’s profits for years, to compete with Netflix and other streaming services, AT&T is bringing WarnerBros., HBO, and Turner together to create a one-size-fits-all service. This will create a more collaborative environment that will be mutually beneficial to these entities to produce better quality streaming services.
With the growing profitability in the streaming service industry, many companies are looking to get into competition including traditional players such as AT&T. Although Netflix is still the biggest player in the streaming service, the outcome of the rivalry is still unpredictable as traditional giants are joining the competition.