New York • AT&T and an investment firm run by former News Corp. executive Peter Chernin have formed an online video venture that could rival Netflix and Hulu.
AT&T Inc. and Chernin Group said Tuesday that they have committed more than $500 million in funding toward the venture. They are not saying how much each company is investing.
The move comes amid rapid growth in online video services. AT&T, a telecoms giant, already offers TV content through its U-Verse service, which competes with more traditional cable TV providers. With online video, though, it could attract customers of Netflix, Hulu, YouTube and other services including people who've stopped paying for traditional broadcast, cable or satellite TV.