Randall Stephenson, the chief executive of AT&T, affirmed that HBO is capable of competing with Netflix.
Since AT&T’s completion of its $85.4-billion acquisition of Time Warner at the second half of this year, the telecommunications giant has been figuring its digital content portfolio.
Furthermore, it has been thinking about what to do with its new media assets.
In a bid to contend with Netflix, HBO is on the spotlight, with AT&T officials privately discussing expansion efforts for the movie network.
HBO’s umbrella organization is Time Warner which is now managed by AT&T since June. They are aiming to establish a considerable subscriber population for the film network.
At the Goldman Sachs 27th Annual Communacopia Conference which is underway in New York City, the chairman of the world’s largest telecommunications company praised HBO.
He remarked that it is “the Tiffany” of the subscription video-on-demand (SVoD) industry. On the other hand, Netflix is the Walmart version of SVoD.
Stephenson announced that AT&T is competitive in the SVoD industry because of its substantial premium content portfolio. He added that Warner Brothers, the entertainment subsidiary of AT&T, possesses an unparalleled library of intellectual property, long-form video-wise.
The AT&T head explained his firm’s ideas on how it can contend with the video streaming giant. Stephenson said that it is not a favorable idea for AT&T to concentrate its financial resources on the Turner networks and the other subsets of its recently acquired Time Warner venture.
He said that the most optimal use of capital should be invested towards HBO instead of the Turner channels like TBS and TNT.
The latter could use some of its “freed-up program time” to present re-runs from HBO. New audiences will, hence, be gained by the movie channel.
Stephenson pointed out that his recommendation could help in augmenting investments in programming. In addition, the company could use the information about the habits and tastes
of customers to shape its content offerings.
The AT&T chief is aware that Netflix is reported to spend roughly $12 billion on premium content this year, dwarfing HBO’s $3.7 billion 2017 programming budget.
Nevertheless, he is confident that his company’s divisions like HBO and Warner Media, which comprises Warner Brothers movie studio and CNN, are fortified to compete with the SVoD behemoth.