AT&T Inc. will launch a new direct-to-consumer streaming service in the fourth quarter of 2019.
AT&T said the new streaming service will feature unit WarnerMedia's collection of films, television series, libraries, documentaries and animation.
"We expect to create such a compelling product that it will help distributors increase consumer penetration of their current packages and help us successfully reach more customers," AT&T said in a statement.
The financial support for the service will be provided through "a combination of incremental efficiencies within the WarnerMedia operations, consolidating resources from sub-scale D2C efforts, fallow library content, and technology reuse," the company said in an Oct. 10 SEC filing.
The company expects to defer some licensing revenues to later periods in the form of increased customer subscription revenues.