Last week AT&T closed on their deal to acquire Time Warner. Now networks like HBO, CNN, Cartoon Network, and TNT and 10% of Hulu are now owned by AT&T. It also looks like AT&T wants to cut the number of ads on these networks.
“One of the big benefits we can bring to the market is lighter ad loads,” said AT&T Chief Executive John Stankey in an interview with Reuters.
Some Turner networks have already cut the number of commercials. Now AT&T wants to cut commercials on other Turner networks.
AT&T can make that move because, according to reports, their main goal is to sell wireless subscriptions with services like AT&T Watch TV. If that is true, AT&T could easily accept smaller profit margins as they plan to make it up with AT&T Wireless profits.
AT&T also plans to use mobile phone and video data supplied by customers who gave them permission to target ads. These targeted ads are far more profitable than traditional ads. This move will not only give AT&T high profits from hopefully more wireless subscribers but also make more with fewer ads.
In one example Stankey said, “if I’m a beer drinker, I’m more interested in seeing things about beer than soft drinks.”
The question now is exactly how far will AT&T reduce ads on Turner networks.
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