A member of a House subcommittee wondered why thecompany couldn’t rightfully be accused of a “structural conflict of interest” in negotiating terms as a video gatekeeper and a video competitor to the new streaming service.
“Here’s why I pursue it, precisely because it is a large company and in a way they stand in for hundreds of thousands of much smaller companies who are even in a more disadvantageous position with respect to negotiating with you.
“You can see at least to outsiders that would look like a structural conflict of interest, like you’re using your control over access to people’s living rooms essentially, you’re using that in order to obtain leverage in terms of getting creative content that you want. And are you essentially converting power in one domain into power in another domain where it does not belong?”
WarnerMedia parent AT&T launched HBO Max in late May and it remais in a distribution standoff with Amazon Fire TV. AT&T CEO John Stankey charged on a earnings call this week that the tech giant is treating HBO Max differently than it does other third-party services.
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