US-based telecommunications company AT&T has formed a $500m joint venture with next-generation media and entertainment investor Chernin Group that will acquire, invest in and launch over-the-top (OTT) video services.
OTT video content is generally sourced from a third party and delivered online through a streaming service, such as those operated by Netflix. The JV will seek to invest in both general streaming services and specialised on-demand video channels that generate revenue through advertising or subscriptions.
Chernin Group has invested in a series of digital media businesses, including music streaming services Pandora and Soundcloud and blogging platform Tumblr, but its key asset in the venture will be its stake in Crunchyroll, a US-based site that offers anime and other Asian media through an on-demand video service.
AT&T meanwhile has more than 16 million broadband subscribers to which it can market the new channels and services.
John Stankey, AT&T’s Chief Strategy Officer., said: “Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group’s management and expertise in content, distribution, and monetisation models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”