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Analyst Slams AT&T Chief, Cable Industry Over Direct-to-Consumer

A stock analyst slammed AT&T's chief and the cable industry, partly over streaming. Warner Bros' decision to release its 2021 film slate simultaneously to theaters and its HBO Max subscription VOD service was an “overcommitment,” Wedbush's Michael Pachter told a…

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virtual Digital Entertainment Group Expo Wednesday. “AT&T bit off way more than they could chew when they bought Time-Warner.” Pachter said the media company is “trying to package HBO Max and sell it and maybe later sell the studio.” AT&T is trying to shore up the value of HBO Max “because they think they’re going to get a Netflix multiple on that,” he said. The company is making "bad decisions for the creatives,” he said, trying to maximize profit for the content "by shoving it onto HBO Max.” Taking a swipe at AT&T CEO John Stankey, Pachter said, "It’s hard to get in the head of somebody who actually doesn’t know what they’re doing,” saying the former WarnerMedia CEO is “in way over his head.” Stankey didn’t respond to a request for comment Thursday. Studios have fallen into “lockstep pursuit down the subscription streaming dream,” another executive told the conference (see 2103250067).