AT&T and The Chernin Group are investing in online video, trying to cash in on a lucrative market.

AT&T and The Chernin Group have teamed up, with both companies reportedly investing at least $500 million total, in an effort to help develop and purchase online video companies. 
“AT&T and The Chernin Group are combining our skillsets to address the growing consumer demand for accessing content how and when they want it,” said John Stankey, AT&T Chief Strategy Officer, in a press statement. 
This is a rather fascinating effort, as Peter Chernin, Chairman and CEO of The Chernin Group, had a failed bid to buy Hulu last year.  AT&T has the customer base and wireless infrastructure, while Chernin has industry knowledge that will help hopefully push the partnership forward.
As online video becomes even more popular, especially among casual consumers using smartphones and tablets, AT&T hopes to attract users to its U-verse broadband service.  Both companies will only focus on the United States to start, as more users begin to stream video into the living room, on smartphones and on tablets. 
Although it’s unsure what is on tap, expect the newly formed venture to launch a wide variety of different online video services, including something similar to Netflix or Hulu.  However, AT&T is only interested in taking calculated risks, so don’t expect anything too outlandish in the future.   

Source: MarketWatch

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