We've known for a little while that US network AT&T was planning to launch a Netflix rival using Warner content, but the company has now said that some of it will be supported by ads.
That means there's likely to be a free tier in addition to monthly subscriptions. It could well be that one tier will feature less premium content, while the subscription version would have the lastest programming and movies available to it.
From comments made by AT&T's CEO Randall Stephenson and reported by TechCrunch, it appears that AT&T is intending most of the service to be based on the subscription side.
AT&T acquired Time Warner last year, meaning it took control of Warner Bros film studios in addition to the HBO and Turner channels. It said in November that it would be launching a streaming service.
Of course, AT&T could offer the service as a bundle with phone deals. It remains to be seen if and when the service will launch in the UK.
Things are certainly hotting up in the video streaming market, with Apple set to enter the fray in the coming months - April, in fact. AT&T suggests that its premium content means it won't be left behind. "Those who have very, very strong IP — deep libraries of IP — are the ones that we think are going to succeed over time,” said Stephenson.