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HBO NOW Case Study

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Vihan Chelliah

on 7 August 2016

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Transcript of HBO NOW Case Study

February 2010 - Launch
October 2014 - Announcement for OTT service for non-subscribers
March 9, 2015 - HBO unveils stand alone streaming service. Launch set for early April
Value Proposition
Access to all of HBO's premium, branded content anywhere
A 'Millennial Missile'
No cable of satellite subscription required
Business Model
Corporate Leadership
Richard Plepler
Chairman and CEO, HBO
"All you need is the Internet"
Jeff Bewkes
Chairman & CEO, Time Warner
Subscription-based ($14.99 per month)
Alternative to expensive TV package subscription
Multiple platform availability
Apple exclusivity
Partnership with Apple
3 month exclusivity deal
Merger of two premium media and technology brands
Great timing - Apple TV price cut to $69
Both brands benefit

Exclusivity has its perks
Apple generally takes 30% revenue of its apps.
Strategies and motives
Vihan Chelliah
"Building flexibility and optionality into distribution" -
Richard Plepler
"Targeting 10 million homes with broadband but no TV subscription" -
Jeff Bewkes
Relationship with cable and satellite companies
There is potential for technological mishaps

HBO GO - Bugs and outages
Netflix's established subscriber base
Established brand

Collection of data

Step away from expensive cable bundles

Implications of cable-free HBO
Can help counter piracy significantly
Improvement on HBO GO's large, but incomplete collection

Capitalizing on growing streaming market
High price
Marketing Strategies
"The goal is to become HBO faster than HBO can become us"
- Ted Sarandos, Netflix Chief Content Officer
Netflix is increasingly producing and licensing more original content
Availability outside Apple
What the future holds
Price hike
International expansion
'Hanging together'
Subscription in April allows customers to have first month free
TV Promos
Expansion to other platforms
Shift to OTT Streaming

Early stages of pay-TV decline

HBO subscriber base not growing as fast as Netflix's
Tom Woodbury
President, Global Distribution
TV Everywhere service
Streaming over 1000 hours of HBO content
Exclusively available to HBO cable subscribers
Powerful brand growth strategy
Curbing Piracy
Capturing Millennial eyeballs
Relationship with pay-tv operators
'4 billion reasons' not to cut the cord
Cannibalization of traditional business
Major Competitors
The Game of Thrones TEst
USer Interface
April 7th, 2015 - HBO Now Launch
Full transcript