AT&T to Pump Money Into HBO to Compete with Netflix
By Michael Kan - PC Magazine
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If you're a fan of HBO, you might benefit from the AT&T-Time Warner merger.
AT&T, which now owns HBO via Time Warner, reportedly plans to boost the network's original-programming budget to compete with Netflix and other video-streaming rivals.
On Friday, AT&T's entertainment division head, John Stankey, told Bloomberg that he plans to increase HBO's programming library and on-demand content. In addition, he wants to make the network's online streaming service, HBO Now, available in more countries.
HBO Now costs $15 a month and includes hits like Westworld and Game of Thrones. The latter alone has been a big reason why people subscribe to HBO Now, but unfortunately, its final season is set to air next year.
HBO has ordered a Game of Thrones spin-off series. The network's other shows, including comedy Silicon Valley, have also been draws. But HBO will have to keep its content competitive when Netflix and Amazon are both investing billions in original content. Even Apple is getting in on the action.
According to Bloomberg, HBO's overall programming budget was at $2.5 billion last year; in contrast, Netflix plans on spending up to $8 billion on video content this year.
HBO also won't be the only network developing a show in the medieval fantasy space. Last year, Amazon reportedly spent $250 million to acquire the television rights for J.R.R. Tolkein's The Lord of the Rings.
Time will tell what other content HBO decides to develop. In the meantime, AT&T is launching a new streaming service for mobile phones called Watch TV next week. "This is a very, very skinny bundle," AT&T's CEO told CNBC. "It will not have sports, it'll be entertainment centered."
The new service is designed for mobile smartphone users. It'll be free for existing AT&T customers on the company's unlimited plan and $15 a month for everyone else.
