Stephenson said of the government's theory that AT&T would inflate the price of Turner content to benefit its satellite TV provider DirecTV. A day earlier, Time Warner Chairman and CEO Jeff Bewkes had called the proposal "ridiculous."
Stephenson outlined the new tech, products and corporate structures that AT&T envisions, which would allow it to improve advertising technology and lower pay-TV costs, before U.S. District Judge Richard Leon in Washington.
AT&T would use data from 100 million mobile phone subscribers, 25 million pay-TV subscriptions and other customer connections to sell targeted advertising based on customers' location, viewing habits and other data. The smarter ads can sell for 3 times to 5 times what traditional pay-TV ads fetch, he said.
"There are companies we can acquire to speed that up," Stephenson said, regarding the adoption of the new technology.