Comments on news posted 2014-04-22 18:27:55: On the same day that Netflix was calling out AT&T's U-Verse network for poor streaming performance, AT&T announced that it was investing in an over the top streaming video service of its own. ..
It says 500 MILLION in the title, but in the first paragraph it does say BILLION which is a typo. Going over to the att page it says MILLIONS there...... so just a leetle oopsy on Karl's part there..... -- Follow Your Bliss -- Joseph Cambell I reject your Reality and substitute my own! -- Adam Savage, Mythbuster
HBO GO, Verizon's Redbox venture, Dish's Blockbuster streaming, At&t's U-verse clone, Hulu Plus, WatchESPN, etc all feel like these companies are getting acquainted with streaming technologies so they're prepared when the time comes that they can make more money via streaming than traditional cable/satellite. I look forward to that day.
1st thought: ATT too incapable against Netflix & Amazon...
2nd thought: Oh, right. No net neutrality in the land of the free. ATT can just start fucking with competitor packets whilst prioritizing their own.
At least their partner Chernin Group is well situated in the content world. If this bird flies it'll be because they are able to wrangle rights deals. Steep hill to climb against Netflix though. Much as I dislike the anti-trust dynamics of ISPs getting involved in content it's difficult to not cheer for advancements in a la carte.
Oh, so they can afford to pour $500 million down the drain on a DOA product, but can't afford to upgrade their peering links (thus making their paying customers happier)? I guess from ATT executives' perspective, deleting $500 million is way better than helping OTT services take away their own video revenue, and who cares about the customers, so why not?
It's not a double standard, but it does show that they are overstating their financial burdens.
In order for an ISP to continue to grow and upgrade their networks (as customers and government regulators alike demand) they do have to make a significant profit, or else upgrades won't be possible. However I don't think profitability is a problem for them in light of this.
The one thing that makes this slightly interesting is the participation of Chernin Group, who last year bought Crunchyroll, one of the real success story in pure-play IP video (they have something like 200K paying subscribers, and lots more just watching ads)