What may have appeared to be just another content carriage deal between a tier-one telco, AT&T Inc. (T), and a content giant, Viacom Inc. (VIA), may actually be the next step in the evolution of multi-platform content distribution.
AT&T, along with MTV Networks and BET Networks, each a unit of Viacom, have reached an expanded agreement for content distribution across multiple platforms, including television and wireless, among other content initiatives.
The agreement includes new high-definition (HD) and international channels, renewal for existing channels, advertising expenditures, and content for AT&T CruiseCast, an in-car entertainment service that will launch this spring.
Carriers have long sought the ability to cut a single deal with content owners that spans multiple platforms. While AT&T doesn’t say if the arrangement covers wireless handsets or the Web, it does cover the telco’s landline TV offering – U-verse TV – and its in-car TV offering.
To be fair, operators and content owners are interested in multi-platform content deals, but programming powers have been skittish about the ability to secure and derive revenue across each of multiple available platforms.
“This strategic deal brings more content to our customers in new and better ways, while supporting Viacom with increased distribution and advertising revenue,” said Dan York, executive vice president of content, AT&T Services Inc., in prepared comments. “Our agreement helps us with several competitive content initiatives, including further differentiating our product set.”
York did not provide details.
AT&T said seven new HD networks will be added to its U-verse TV lineup at an unspecified time later this year, including MTV HD, VH1 HD, CMT HD, BET HD, Nickelodeon HD, COMEDY CENTRAL HD and Spike HD.
The deal, according to the telco, also renews carriage of the MTVN and BETN channels and VOD content already featured on U-verse. AT&T added that U-verse TV will also gain new international channels, including MTV India, later this year.
Also, five MTVN and BETN channels will be part of the AT&T CruiseCast in-car entertainment service via satellite when it launches later this spring.
Specific terms of the agreement were not disclosed.
