AT&T creates $500M joint venture for a Netflix-style TV service

Gigaom

AT&T(s T), the nation’s second largest broadband provider and wireless company, is getting into the streaming business with a $500 million joint venture created to acquire, invest in and launch a Netflix(s nflx)-style video streaming service. As the television distribution model that’s been in place for decades collapses online, this deal marks the first time a big U.S. ISP has decided to go over the top with a TV service.

AT&T has joined forces with media and entertainment company the Chernin Group, and together the two companies have committed $500 million in funding to the venture. More detailed financial terms of the transaction have not been disclosed. However, the Chernin Group will bring assets to the venture, including the contribution of its majority stake in Crunchyroll, a subscription video on demand service.

From the press release, it is unclear exactly what type of content the joint venture hopes…

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