Netflix and AT&T/Time Warner are set to go to war. Fresh from its $80 billion takeover of Time Warner, AT&T has announced an internet-only streaming service, DirecTV, that is aimed squarely at Netflix subscribers.
That would always be seen as a threat by Netflix CEO Reed Hastings. But after AT&T’s takeover of Time Warner, the company now owns big-name content producers like HBO and CNN, and the internet pipes that deliver those to the consumer. That’s a dangerous combination.