AT&T creates $500M joint venture for a Netflix-style TV service

AT&T, the nation’s second largest broadband provider and wireless company, is getting into the streaming business with a $500 million joint venture created to acquire, invest in and launch a Netflix-style video streaming service.

The deal marks the first time a big US ISP has decided to go over the top with a TV service.

AT&T has joined forces with media and entertainment company the Chernin Group, and together the two companies have committed $500 million in funding to the venture. Chernin Group will bring assets to the venture, including the contribution of its majority stake in Crunchyroll, a subscription video on demand service.