AT&T Inc is going to restructure its WarnerMedia business, according to an internal memo to employees on Monday seen by Reuters, as it is lining up to challenge the Walt Disney Co and Netflix Inc at streaming video services.
AT&T restructuring began with resignation of two top executives leaving, as Richard Plepler, HBO’s head and David Levy, both left the company at start of this month, but there will possibly another round of more layoffs and cost cutting plans the company will be going through as part of its restructuring strategy.
Last week AT&T finally got clearance for its $85 billion deal to acquire Time Warner when an appeal court ruled in favor of the company in a case challenging the deal and now AT&T is more focusing on its programming business with reinvestments of its savings.
Currently the streaming video market is heavily dominated by the Netflix and now traditional media companies have increased their efforts to draw near to the Netflix.
Like AT&T, Disney is also planning to launch its own streaming service Disney+ by the end of this year.
As part of restructuring, the upcoming video streaming service along with cable channels TNT, Tru TV, TBS and premium cable network of HBO will be operating under the AT&T’s WarnerMedia Entertainment with Robert Greenblatt as its chairman.
The news channel CNN with an additional assignment of managing company’s sports programming will continue to be headed by Jeff Zucker as chairman of News and Sports.
Warner Bros Hollywood and TV studios will continue to be led by Kevin Tsujihara, who will be given with additional responsibilities of overseeing two new businesses including a newly created kids and young adult group.
Part of restructuring, advertising and affiliate sales have been consolidated by WarnerMedia under one division to be led by newly appointed chief revenue officer Gerhard Zeiler.