By Tali Arbel; The Associated Press ~ Jan 29, 2020
As entertainment companies roll out new streaming services, they’re stocking them with the goodies from their own content archives, hoping that the loss of income today will mean more money rolling in from subscribers in the future. In its fourth quarter, AT&T said that bet cost it $1.2 billion in revenue.
AT&T isn’t alone in doing this. Comcast’s NBCUniversal took back “The Office ” from Netflix for Peacock; Disney grabbed its movies for Disney Plus. Disney has said it lost about $150 million in licensing revenue in its 2019 fiscal year from terminating deals with Netflix and other services.
AT&T’s WarnerMedia is launching HBO Max in May and decided to keep “Friends” and “Big Bang Theory” for itself to bolster the service as its traditional TV customers melt away.
