AT&T's got the Creativebug.
Variety reported Monday that the AT&T Inc. (NYSE: T) and Chernin Group's joint venture, which was formed in April, has bought San Francisco-based how-to video site, Creativebug, for $10million. (See AT&T Joins OTT Video Parade.)
Creativebug offers paid and free video guides on quilting, jewelry-making and other arts and crafts, like how to turn a less than stylin' old muumuu into this cute dress.
The Creativebug acquisition may well not be the last buy that the newly-christened Otter Media makes as the joint venture attempts to push deeper into the over-the-top content delivery world. In April, AT&T and Chernin said they'd committed more than $500 million to the new OTT bid, with the goal of developing "advertising and subscription VoD channels as well as streaming services."
The JV will have competition, however, in trying to develop a portfolio of compelling OTT content that users will actually pay for. YouTube Inc. is reportedly once again trying to kickstart its premium channels too. (See YouTube Seeks More Premium Content.)
— Dan Jones, Mobile Editor, Light Reading