Peter Chernin Wants to Introduce You to Another Netflix Competitor … Someday

The Chernin Group and AT&T (NYSE: T  ) have agreed to invest $500 million in "over-the-top" video services. What's that mean? And should Netflix (NASDAQ: NFLX  ) investors worry? Host Ellen Bowman puts these questions to analysts Nathan Alderman and Tim Beyers in this week's episode of 1-Up on Wall Street, The Motley Fool's web show in which we talk about the big-money names behind your favorite movies, toys, video games, comics, and more.

Nathan says there's too little information available to know whether to buy AT&T stock or sell Netflix shares. All we really know is Chernin has the cash to invest having bid a half-billion for Hulu last year before its owners agreed to put another $750 million into reshaping the business. The Chernin Group has also invested in the anime channel Crunchyroll.

Tim says the only reason to pay attention to this deal is Chernin's track record. In his earlier roles at Twenty-First Century Fox, he oversaw two of the studio's biggest grossers: Avatar and Titanic. At The Chernin Group, he's directed investments in Tumblr and is backing a new Planet of the Apes franchise. He's also on the boards of Pandora and Twitter. If anyone can help AT&T develop a legitimate streaming alternative, Chernin is probably the guy, Tim says.

Now it's your turn to weigh in using the comments box below. Do you expect AT&T and The Chernin Group to create a formidable Netflix competitor? Why or why not? Click the video to watch as Ellen puts Nathan and Tim on the spot, and then be sure to follow us on Twitter for more segments and regular geek news updates!

If you take only lesson from this article, let it be this ...
You know why Peter Chernin can afford to commit a half-billion to a big yet still undefined project? He's spent a lifetime making smart investments. You can too, and we're here to help. Our analysts have identified three stocks that they believe could double in price several times over. Everything you need to know about these FREE picks is available to you in a new free report. Download it instantly by clicking here now.

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Tim Beyers

Tim Beyers first began writing for the Fool in 2003. Today, he's an analyst for Motley Fool Rule Breakers and Motley Fool Supernova. At, he covers disruptive ideas in technology and entertainment, though you'll most often find him writing and talking about the business of comics. Find him online at or send email to For more insights, follow Tim on Google+ and Twitter.

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