Peter Chernin, AT&T in Online Video Venture

DALLAS/LOS ANGELES: The Chernin Group is partnering with AT&T to acquire, invest in and launch over-the-top video services, with more than $500 million committed in financing for the new joint venture.

The venture is looking to invest in advertising- and subscription-supported SVOD services, as well as streaming platforms. Chernin is contributing its majority stake in SVOD platform Crunchyroll to the venture.

“A critical part of The Chernin Group’s strategy has been our significant focus on the online video industry, and joining forces with AT&T only further underscores our strategic commitment in this area as operators, investors and programmers,” said Peter Chernin, chairman and CEO of The Chernin Group. “Consumers are increasingly viewing video content on their phones, tablets, computers, game consoles and connected TVs on mobile and broadband networks. AT&T’s massive reach on those platforms across mobile and broadband and their commitment to the online video space make them the perfect fit for this venture with us.”

John Stankey, chief strategy officer at AT&T, added, “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. 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.”