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Is AT&T Going to Ruin HBO?

Posted On: Jul 10, 2018   |   Posted By: The New Republic

It's only been a month since AT&T's merger with Time Warner was allowed by a federal judge, in a decision that will have deep and lasting implications for the future of American economic and cultural life. The merger can already be felt in the form of higher prices , while its long-term legacy will likely include increased consolidation-and monopolization-in the telecommunications and media industries. An early loser in the merger appears to be HBO, which was acquired by AT&T a month ago, and is already feeling pressure from executives to overhaul its model in pursuit of greater profits. As soon as the merger was approved in mid-June, reports emerged that HBO and AT&T were heading toward a culture clash. “HBO's and AT&T's cultures also come from a very different financial perspective,” communications expert Gary Arlen told The New York Times. “AT&T comes from a legacy of rate regulations, and every expense has to be justified.” HBO, in contrast, bet big on quality, resulting in a string of successes dating...

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