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One of the largest internet and mobile providers is buying a premier content creator. With the seismic shift to mobile video, it positions them to ensure both remain relevant. As consumers cut the cable cord and shun traditional channel bundles, AT&T will be able to deliver what the people want, options.
We counsel clients on the growing importance of a video content and mobile delivery strategy. Mobile video views increased 400% from 2012 to 2014. In 2016 it is estimated that video will account for 69% of all internet traffic and 50% of mobile. Those numbers are only expected to grow, up to 79% of all internet traffic in 2017.
What may be most exciting for the future is having a seamless strategy for creation and delivery. Established brands can have trouble adapting to change (looking at you Blockbuster), but this move embraces the future. How will Time Warner’s approach to content creation change and how will AT&T play a role in understanding the user experience across platforms?
The deal is not guaranteed to be realized. Already the Presidential campaigns and lawmakers are expressing concerns or outright opposition. Some are comparing it to Comcast’s takeover of NBC Universal, but this new deal takes the connection of content creation and delivery to a new place, the consumer’s hand.