AT&T & Chernin Group pony up $500M to find the next Netflix

Few streaming services can match the success that Netflix has had, but that will soon change if AT&T, Chernin Group, and a huge sack of cash have anything to say about it.

The two companies announced the launch of a joint venture today that’s focused on finding the next Netflix-like service.

The new venture will have access to $500 million in funding, which will be used to acquire, invest, and launch streaming video services. Additional financial terms of the venture were not disclosed.

It makes sense that AT&T would want a shiny new video service to call its own. Verizon has thrown its efforts into launching RedBox Instant, and competitor Comcast is still a silent co-owner of streaming video service Hulu. Also, AT&T has access to 110 million wireless subscribers and over 16 million broadband subscribers, which could help its future video service gain traction should AT&T want to cross promote to those current customers.

As for Chernin Group, the firm is already well versed when it comes to investing in over-the-top video services. Chernin previously invested in Hulu and more recently acquired a $100 million stake in anime-focused streaming video service Crunchyroll.

“Consumers are increasingly viewing video content on their phones, tablets, computers, game consoles, and connected TVs on mobile and broadband networks. AT&T’s massive reach on those platforms across mobile and broadband and their commitment to the online video space make them the perfect fit for this venture with us,” said Chernin Group chairman and CEO Peter Chernin in a statement.

The new joint venture should be good news for consumers who don’t feel the current crop of video services supplies them with enough interesting content.