AT&T's $500 million collaboration with The Chernin Group will help the company further develop its visual platforms for businesses, according to a company press release, Tuesday.

The telecommunication company's chief strategy officer said the endeavor was announced to accommodate customers' demand for better information access on their smartphones.

"Combining our expertise in network infrastructure, mobile, broadband and video with The Chernin Group's management and expertise in content, distribution, and monetization models in online video creates the opportunity for us to develop a compelling offering in the OTT space," John Stankey said. The acquisition is expected to aid in over-the-top space, along with advertising. Subscription video on demand and streaming services are also included in the deal.

The Chernin Group's chairman and CEO has always aimed to gear its strategy towards digital content, he explained in a public release.

"A critical part of The Chernin Group's strategy has been our significant focus on the online video industry, and joining forces with AT&T only further underscores our strategic commitment in this area as operators, investors and programmers," Peter Chernin said in a statement.

The endeavor is also expected to help accommodate the always-shifting technology world.

"Consumers are increasingly viewing video content on their phones, tablets, computers, game consoles and connected TVs on mobile and broadband networks. AT&T's massive reach on those platforms across mobile and broadband and their commitment to the online video space make them the perfect fit for this venture with us," Chernin said in the statement.

The project is part of $119 billion in funds that AT&T has put forth throughout the last six years in its United States market. The company has strived to keep up with an increase in the number of consumers who want to access content wirelessly, the press release reported.

Tuesday's announcement comes a day after AT&T unveiled plans to expand its Gigapower U-Verse capabilities to 21 more cities.

These cities include Atlanta, Charlotte, Chicago, Cleveland, Houston and Miami.

A number of California municipalities including Los Angeles, Oakland, San Diego, San Francisco, and San Jose will also be outfitted with the fresh technology.

The company added Austin, Dallas, Raleigh-Durham, N.C., and Winston-Salem prior to Monday's announcement.

The Chernin Group is an advanced technology company.