It is reported that the satellite/phone provider, AT&T, is planning to buy the media powerhouse, Time Warner. AT&T acquired the rights for DirecTV earlier and they have enjoyed enormous success in the TV arena after the deal with the satellite provider.
Bloomberg News recently reported that the executives from both Time Warner and AT&T were indulged in “informal” discussions about a potential deal between the companies. Time Warner, one of the largest entertainment companies in the world, currently owns Warner Bros., Turner, and HBO. If AT&T manages to enter into a partnership with Time Warner, they will be able to own a number of premium content networks.
The rumor about this merger emerged just a day after Wall Street Journal stated that AT&T is taking a significant steps with their recent acquisition, DirecTV. It should be noted that the Telco has already announced their plans to introduce a new online streaming platform through DirecTV, which is called as DirecTV Now.
AT&T has also hinted that this online streaming platform will be available to subscribers by the end of the year. DirecTV subscribers will be able to sign in to this streaming service and watch their favorite movies, popular TV shows, live sports events, and a lot more other contents, even without using a set-top box, satellite dish, or other equipments.
As many subscribers have shifted their focus towards online offerings, smartphones, and mobile data these days, providers cannot just rely on just providing internet to the users. This is why major telecommunication companies are determined to add more services into their offerings. Even wireless firms in the country are trying to either acquire or produce their own exclusive content in order to attract more customers towards their service.
The Verizon-Yahoo Deal
Another major telecommunication brand, Verizon, is trying to acquire Yahoo for an estimated budget of $4.8 billion. Yahoo is just behind Google and Facebook on the number of online audiences, who are following the web company.
Analysts revealed that internet providers would be able to trace details on the sites subscribers and on what they are consuming during the browsing session. Internet providers can use this data as targeted advertising and turn it into revenue. However, some analysts argue that the regulatory efforts in Washington may advise against using this strategy.
In a recent email, Craig Moffett, a telecom analyst at the firm MoffettNathanson, said that, “The proposed rules are a clear negative for ISPs like Verizon, which was seemingly banking on location-based advertising as a critical part of their AOL/Yahoo strategy. Geolocation information is expressly identified as being subject to the more onerous ‘sensitive information’ rules.”