AT&T and The Chernin Group, which manages and invests in media businesses around the world, will launch a joint venture targeting over-the-top (OTT) video services. The companies agreed to commit over $500 million to the effort to bring advertising-supported and subscription VOD channels, as well as streaming services, to market.
The Chernin Group brings media assets as well as expertise to the venture, including contribution of its majority stake in Crunchyroll, a subscription video on demand service. AT&T brings its extensive network resources.
”AT&T and The Chernin Group are combining our skill sets to address the growing consumer demand for accessing content how and when they want it,” said John Stankey, Chief Strategy Officer at AT&T. “Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group’s management and expertise in content, distribution, and monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space.”
- The Chernin Group, LLC (TCG) is a privately held, independent media holding company founded by Peter Chernin and based in Los Angeles, CA. TCG’s assets include Chernin Entertainment; a majority stake in Hong Kong-based CA Media, ; and strategic investments in digital media companies including Fullscreen, Crunchyroll, Pandora, SoundCloud, Flipboard, Scopely, MiTú, Base79, Medium, and Tumblr (sold to Yahoo!). Providence Equity Partners LLC; Qatar Holding LLC; Victor Koo (founder and CEO of Youku) and Chengwei Capital; and other shareholders are strategic partners of and investors in TCG.