×
You will be redirected back to your article in seconds

WarnerMedia Streaming Platform to Launch With Three Tiers of Service, Emphasis on Movies

WarnerMedia’s nascent streaming service will launch in beta form by the end of 2019 with three tiers of programming options, including an “entry-level” package focused on movies.

AT&T unveiled plans for the unnamed service on Thursday during a presentation in New York to investors to talk up the company’s prospects and plans for paying down the considerable debt that AT&T piled on with its $84.5 billion acquisition of Time Warner. AT&T chairman-CEO emphasized that the company is laser-focused on chopping down its debt load to no more than 2.5 times earnings by the end of 2019.

AT&T said WarnerMedia’s SVOD service will offer consumers three options to subscribe, starting with “entry-level movie-focused package.” It will also feature “a premium service with original programming and blockbuster movies” and a third option “that bundles content from the first two plus an extensive library of WarnerMedia and licensed content.”

John Stankey, WarnerMedia CEO, said the company’s goal was to offer programming with appeal to a wider audience than is typically targeted by WarnerMedia’s HBO, Turner and Warner Bros. units.

“We want to broaden the relevant demographic base,” Stankey told investors. “Our goal now is to open the aperture. We want to pick up more content and get more engagement on digital content.”

The Wall Street analysts in the room pressed Stankey on the fundamental dilemma facing the media giants that are aiming to move into the direct-to-consumer arena — the content licensing revenue that will be lost if the company no longer sells its movies and TV shows to outside buyers in favor of keeping it exclusive to its proprietary streaming platform. Stankey was clear that WarnerMedia will continue to sell programming in international markets for the near term as well as selectively on the domestic front.

“We’re not going to take all of our content and hold it for ourselves,” he said.

At the same time, Stankey hinted that the prevailing trends in the industry will make it harder for Netflix and other companies that don’t have a vast content library at their disposal to keep their services flush with premium programming. WarnerMedia, Disney and others are increasingly focused on building their own direct-to-consumer platforms rather than cashing checks from Netflix, Amazon et al for mammoth licensing deals

“Some incumbents in that space should expect their libraries are going to get a lot thinner,” Stankey said. “Think about what happens in the next 18 to 24 months. We’re going to see a pretty substantial structural shift that is going to occur.

On Monday, WarnerMedia named Brian Bentley, formerly head of marketing for DirecTV and AT&T Entertainment Group, as general manager and exec VP of direct-to-consumer development to oversee the streaming service. There’s much speculation in the industry about who WarnerMedia might tap to oversee programming for the venture, which is expected to also license content from outside providers.

AT&T chairman-CEO Randall Stephenson emphasized that the company is laser-focused on chopping down its debt load to no more than 2.5 times earnings by the end of 2019. The debt as it stands now, at $170 billion, is about 2.8 times earnings.

AT&T is looking at asset sales to speed up the debt reduction process, and one of the non-core items on the table is the 10% stake in Hulu that AT&T inherited from Time Warner. Disney is about to acquire a majority interest in Hulu through its acquisition of 21st Century Fox, which means Disney is the likely buyer for AT&T’s interest. (Hulu at present is a joint venture of Disney, Fox, Comcast and AT&T.)

“We are focused on one thing in 2019 and that’s getting to 2.5,” Stephenson told the crowd.

More Biz

  • Dwyane Wade on Supporting His Son

    NBA Star Dwyane Wade on Supporting His Son's Attendance at Miami Pride

    NBA star Dwyane Wade spoke to Variety about why it was important for him to support his younger son attending a pride parade last spring. In April, Wade’s then 11-year-old son Zion posted pictures of himself at Miami Pride, with his siblings and stepmother Gabrielle Union. Wade, who was on the road with the Miami [...]

  • Songs for Screens: Eric Church Teams

    Songs for Screens: How Eric Church Teamed With Ram Trucks — and Five Tons of Vinyl — for ‘Solid’ Campaign

    Country star Eric Church has long used his new music to reward his loyal fans, from surprise releasing 2015’s “Mr. Misunderstood” album as a direct fan-club exclusive to impromptu meet-and-greets before his hometown show in Greensboro, North Carolina. So when Church was prepping the April vinyl release of 2018’s critically acclaimed “Desperate Man,” the singer [...]

  • Harvey Weinstein legal team

    Harvey Weinstein Loses Another Defense Lawyer

    Harvey Weinstein has lost another defense lawyer, just three months before he is set to go on trial for rape and sexual assault. Attorney Jose Baez told the judge overseeing the case that Weinstein had taken actions that made it difficult to represent him, according to a letter obtained by the New York Post. Baez [...]

  • https://pmcvariety.files.wordpress.com/2019/06/kindred_spirits_2019_v7.jpg

    Kindred Spirits Host Fundraiser for Child Refugees

    The Kids Entertainment Professionals for Young Refugees will host its third annual Kindred Spirits fundraising campaign this month on behalf of UNICEF and in coordination with World Refugee Day, which is Thursday. The grassroots, volunteer organization’s online fundraiser will take place from June 14-27, and 100% of every donation made will benefit UNICEF. “We call [...]

  • Vid Angel

    VidAngel Hit with $62.4 Million Judgment for Pirating Movies

    A jury on Monday ordered VidAngel to pay $62.4 million to Disney, Fox, and Warner Bros. for streaming hundreds of movies on its service without permission. The verdict is potentially a death blow to the Utah-based company, which sought to allow family audiences to watch Hollywood fare while skipping past violence, sex, and other objectionable [...]

  • Nicholas Sparks

    Nicholas Sparks Apologizes, Explains Opposition to LGBT Club

    Romance writer Nicholas Sparks issued an apology on Monday for remarks he made in 2013 opposing the formation of an LGBT club at his Christian school. In an email published last week by the Daily Beast, Sparks faulted Saul Benjamin, who was then the headmaster of the Epiphany School of Global Studies, for pushing an [...]

  • Game of Thrones Season 8 Production

    'Game of Thrones,' Netflix VFX Among Those to Be Featured in SIGGRAPH Production Talks

    VFX pros behind the final season of “Game of Thrones,” the blockbuster film “Avengers: Endgame,” Pixar’s upcoming “Toy Story 4,” last year’s Oscar-winning “Spider-Man: Into the Spider-Verse,” Netflix series, including “Stranger Things,” and more will give SIGGRAPH 2019 attendees a behind-the-scenes look at their work during the conference’s Production Sessions. There will even be a [...]

More From Our Brands

Access exclusive content