Otter Media has been around since 2014
AT&T (T) has taken full ownership of Otter Media, the digital branding and media company it co-owned with Chernin Group. Otter Media was founded in 2014. Although AT&T didn’t disclose how much it paid for the remaining stake in Otter Media, the telecom giant suggested that it didn’t have to break the bank to close the deal.
“The terms of the deal were not disclosed, but it did not have a material effect on AT&T’s first-half 2018 results when the majority of the deal was funded,” the company said in a statement.
First-half profit was $9.8 billion
AT&T (T) made a profit of $9.8 billion in the first half of 2018. The amount comprises a $4.7 billion profit in the first quarter, an increase of 34.4% from a year earlier. AT&T posted a $5.1 billion profit in the second quarter, a 31.1% increase from a year earlier.
Global SVOD market presents $$73.9 billion opportunity
AT&T noted that Otter Media would operate under its WarnerMedia unit, which it set up after acquiring Time Warner. Otter Media is one of the leading subscription video on demand (or SVOD) services and has 2.0 million paying subscribers. Dish Network’s (DISH) Sling TV has 2.3 million subscribers.
Although estimates vary, the global SVOD market is on a growth trajectory. Transparency Market Research predicts that the global video on demand market could post revenues of $73.9 billion by the end of 2024. The market was estimated to be worth $39.6 billion in 2017.