American telecommunications giant AT&T Inc. decided to introduce changes to the premium cable network HBO in order to rival Netflix, media reported on Monday. The move comes after the telecom company acquired Time Warner Inc. earlier last month, of which HBO is a part of.
AT&T wants to upgrade the premium network to look more like the extremely popular content streaming provider Netflix by making HBO faster and, in turn, able to generate more revenue. The new management already announced that it will be a “tough year” for the famous content producer while top AT&T Chief John Stankey, who is now in charge of HBO, also noted that “we need hours a day,” highlighting that the network is competing against contents that “captures user attention every 15 minutes.”
Last month, the telecom giant acquired Time Warner for $85.4 billion and renamed the company as Warner Media after the Department of Justice gave a green light for the deal.
Meanwhile, AT&T shares fell 1.59% in the first few minutes of trading on Wall Street while Netflix stock gained 2.12%.