It was a few years back that AT&T Inc (NYSE:T) won in a court ruling that allowed it to close the purchase deal of Time Warner. The company had made a statement to the Congress outlining its take on the Time Warner-owned shows.
The company’s earlier commitment
The company’s CEO, Randall Stephenson, addressed the senate promising that they would remain committed to the distribution of Time Warner’s content. The turn of events is proving something else because AT&T hasn’t lived up to its promise since it has restricted the content to its platforms.
Analysts have spoken about the matter outlining the company’s plot to hurt some particular markets. This is contrary to the promise it made in the early stages where it distanced itself as the sort of company that would engage in such an act. The business guru had asserted that any business that would get involved in such acts would be so unfair. According to it, anyone would be right to refer to such a company irrational in its business undertakings.
The business had moved a step further to declare that it would be to its best interest to have the content from Time Warner distributed over a wide scale. It expressed its commitment to ensuring that the content was seen by as many eyes as possible and also advocate for improved programming.
AT&T outlined that it would be important to try as much as possible to work with great talent to achieve success. It asserted that widespread content distribution was one of the best ways to draw great talent.
Sources indicate the company’s move has affected its business performance drastically. For instance, its quarterly revenues have declined by about $1.2 billion. The company has moved fast to justify itself. It outlines that it had to make this sacrifice so that the planned HBO Max service would become more attractive. The plan was to have it show what the business guru terms exclusive content.
The company’s spokesperson has confirmed the $1.2 billion decline in revenue, saying that they saw it coming. According to him, it was as a result of the company’s decision to quit selling existing content. These include the Fresh Prince and The Big Bang Theory.