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How Netflix and Hulu helped save the contract between AT & T and Time Warner



They have changed the traditional cable and television model that has existed for decades by offering programs on demand, over the Internet and generally at a lower price.

But the existence of these two technology companies, as well as others like Hulu, YouTube TV and the streaming service announced by Apple, is one of the reasons why a panel of three judges of the Court of Appeal United States for the DC circuit has endorsed one of the biggest media mergers of the last decades – a merger between two traditional companies, AT & T and Time Warner.

The judges said that the government failed to prove that the newly merged company would raise prices or harm the competition, but they acknowledged that new competitors in the media landscape were forcing incumbent operators such as AT & T. Do not improve their game

"[T]The industry is constantly evolving and experiencing increased competition, "wrote the three judges on Tuesday.

Citing the growing market share of services such as YouTubeTV and Netflix, the judges wrote that "more and more cable customers are cutting the cord" and cease to operate. [Multichannel video programming distributors] service altogether. Often, these clients do not come out of the entertainment business entirely, but instead. [streaming services] for the entertainment service. "

It took 15 months, but the legal saga between the Department of Justice and AT & T on whether the Time Warner acquisition by the telecommunications giant violates the antitrust rules is now over. Time Warner, which has since been renamed WarnerMedia, is the parent company of networks such as CNN, TNT and HBO.

An appeal court said on Tuesday that the deal was not anti-competitive and rejected the Justice Department's second attempt to stop the deal. Hours after the decision of the court of appeal, the Justice Ministry said that he had finished fighting the merger.

The judges pointed out that streaming services in the market are "vertically integrated", which means that they distribute the content they create. This is essentially what AT & T wants to do by holding companies such as HBO, Warner Bros. and TNT.

AT & T said in its initial offer and in court that this was one of the reasons why the merger was necessary. The main attraction is the need for more customer data: Netflix gets a wealth of information about what consumers watch and why – up to the second. This data can be used to determine which shows and films to produce next, how to market its content and ad serving services, and how to further tailor their ads.

"The market we are competing on is a matter of time and attention," WarnerMedia manager John Stankey told the witness during the trial. "Facebook, Google, Netflix – they distract all people from what they used to do … it's the battle here."

AT & T lost little time jumping into wars continuously. Five months after the closing of the transaction, AT & T announced that the company would launch its own, yet unknown, service from WarnerMedia.

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