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AT&T committing 'major strategic error' with three-tier streaming service plans, analyst says

December 11, 2018 / Ben Munson

AT&T’s WarnerMedia last month revealed the three-tier service structure for its upcoming streaming product, and one industry analyst sees the plan as a big mistake.MoffettNathanson analyst Michael Nathanson said the structure for WarnerMedia’s direct-to-consumer streaming service, coupled with the company’s plans to continue licensing its content on a nonexclusive basis, represents a “major strategic error.”“For the life of us, we can’t figure out why the company wouldn’t use the HBO brand and app as their single global platform and populate their HBO Now and HBO GO apps with library content like ‘Friends,’ ‘The West Wing’ or more Warner Bros. TV library content,” wrote Nathanson. “Most observers believe that consumers will select about three to four SVOD services and HBO is already within that consideration set. Even if AT&T is getting $100 million a year for ‘Friends,’ HBO would ha...