Why AT&T Believes Time Warner Should Consider Mobile-Friendly Content



Rise in mobile viewing content

In the US (SPY), media firms are trying to make a path for themselves in the international market with the help of their online video streaming services. The major challenge they come across is that of a weak Internet ecosystem.

For the most part, media firms have generated mobile-friendly content for users. But in developing nations like India (EPI), limited internet access and slow broadband speeds have caused users to switch to viewing content on mobile devices.

AT&T (T) is now looking to offer mobile-friendly content after its proposed acquisition of Time Warner (TWX) is approved. AT&T’s management stated that the company is looking at curating Time Warner’s content and making it more mobile-friendly.

Notably, online video streaming company Netflix (NFLX) is also looking at video streaming over mobile as it expands internationally.

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Rise in mobile video traffic

A massive chunk of mobile data traffic consists of video, which drives wireless carrier data consumption. According to Cisco Systems’ (CSCO) VNI (visual networking index) at the end of 2015, video constituted ~61% of mobile data traffic in the US. But it’s expected that by the end of 2020, this number will be up to ~77% of mobile data traffic in the US.

Given these statistics—and as media companies are constantly looking to expand internationally—mobile-friendly content could be the way to go.


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