AT&T (NYSE:T) has failed to receive a significant bump as stocks like Disney and Netflix have made big gains in 2019. Disney recently unveiled its streaming platform, Disney Plus, which it hopes will be able to challenge Netflix in this lucrative and rather new entertainment arena.
AT&T has wrestled with controversy in wrangling its newly acquired content, with a special mention to the HBO brand. Long time HBO chief Richard Plepler recently resigned from HBO, citing disagreements with the company’s new owners. AT&T is constructing a streaming platform that it hopes will be able to compete with giants like Disney and Netflix. HBO’s premium content offerings will be at the forefront of that push.
Its ambition has motivated AT&T to push for more content at HBO. There has reportedly been some pushback from the network, which has thrived as a producer of high-quality and sometimes niche programming. The departure of Plepler has some analysts warnings that AT&T could spark a talent exodus, which has the potential to degrade such a highly sought-after entertainment asset. However, in the near-term there have not been significant shake-ups beyond the departure of Plepler.
Internal strife aside, HBO remains a top shelf asset and probably the most esteemed brand in television. Investors should watch AT&T’s unveiling of its streaming service closely. A telecom giant, which boasts an attractive 6.5% dividend yield, may emerge as a top flight growth option if it can rise to compete with others in this growing sector.
