AT&T’s (T) WarnerMedia is looking to compete with rivals Netflix, Amazon, and Disney by unveiling its own streaming service by the end of this year. To attract subscribers, it plans to offer premium and exclusive content. WarnerMedia already has a vast library of blockbusters, including Batman and Harry Potter, as well as popular TV series such as Friends. Through HBO, it plans to air hit shows such as Game of Thrones. AT&T may further push HBO, which has more than 130 million subscribers worldwide, to produce shorter movies and bite-sized content suitable for mobile devices.
Several new players are entering the streaming industry. Penetration is expected to grow to 9.9% in 2022 from 7.5% in 2018 in the space thanks to consumers’ preferences shifting from traditional cable subscriptions to over-the-top offerings.
Despite the growing competition, Netflix is likely to remain the biggest streaming service provider, owing to its spending on original content and huge subscriber base. Netflix spent more than $8 billion in 2018 on original content and has plans to continue to invest in new and exclusive programming this year. The company’s subscriber base, which comprises 148.9 million mobile, laptop, and television users, is expected to reach 153.86 million in the second quarter.