AT&T's WarnerMedia Inks Deal With Charter Communications
AT&T Inc.’s unit T, WarnerMedia, has inked a new multi-year distribution agreement with Charter Communications, Inc. CHTR that will make HBO Max, WarnerMedia’s soon-to-be launched streaming service, available to the cable operator’s customers. Charter is one of the largest cable companies in the United States, serving more than 29 million customers in 41 states through its Spectrum brand.
The platform, debuting this May with 10,000 hours of video, will be available at no extra charge to Charter Communication's customers with an HBO subscription. Charter Communication, which has been a longtime distributor of WarnerMedia’s networks and on-demand content, is likely to accelerate the adoption of HBO Max. The product will also include a list of new original series and films from across WarnerMedia’s library as well as key third-party licensed programs.
The Dallas, TX-based telecom and media company seems to be firing on all cylinders to acquire a loyal customer base while competing against industry frontrunners like Netflix NFLX and Walt Disney DIS. Even though there has been legitimate concern about WarnerMedia’s higher prices acting as a barrier to greater adoption among audiences, it is undoubtedly going to be a major player in the streaming space. Whoever causes disruption will lead the race, rest assured customers will get a good deal.
In the meantime, AT&T stated that it is unable to estimate the impact of coronavirus on its business. Among the factors that could affect results are the effectiveness of COVID-19 mitigation measures, global economic conditions, consumer spending, work-from-home mandates and supply-chain sustainability. These factors could translate in increased or lower demand for the company’s products and services as well as impact its ability to serve customers.
That said, it continues to care for employees and enhance network, including nationwide 5G. The investments will help ensure that the company is well positioned when the pandemic passes and economies begin to recover. The company is scheduled to report first-quarter 2020 results on Apr 22, before the opening bell.
AT&T’s shares have lost 20.4% compared with 10.8% decline of the industry in the past six months.
AT&T currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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