AT&T and an investment firm run by former News Corp. executive Peter Chernin have formed an online video venture.
Dallas-based AT&T Inc. and Chernin Group said Tuesday they've committed more than $500 million in funding.
The Chernin Group is contributing its assets to the venture, including its majority stake in Crunchyroll, a subscription-based provider of anime videos.
AT&T already offers TV content through its U-Verse service, which competes with more traditional cable TV providers. With online video, though, it could attract customers of Netflix, Hulu, YouTube and other services -- including people who've stopped paying for traditional broadcast, cable or satellite TV.
Rival Verizon Communications Inc. is planning similar services.
Copyright AP - Associated Press
