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HBO NOW Case Study
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
Access to all of HBO's premium, branded content anywhere
A 'Millennial Missile'
No cable of satellite subscription required
Chairman and CEO, HBO
"All you need is the Internet"
Chairman & CEO, Time Warner
Subscription-based ($14.99 per month)
Alternative to expensive TV package subscription
Multiple platform availability
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
"Building flexibility and optionality into distribution" -
"Targeting 10 million homes with broadband but no TV subscription" -
Relationship with cable and satellite companies
There is potential for technological mishaps
HBO GO - Bugs and outages
Netflix's established subscriber base
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
"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
Subscription in April allows customers to have first month free
Expansion to other platforms
Shift to OTT Streaming
Early stages of pay-TV decline
HBO subscriber base not growing as fast as Netflix's
President, Global Distribution
TV Everywhere service
Streaming over 1000 hours of HBO content
Exclusively available to HBO cable subscribers
Powerful brand growth strategy
Capturing Millennial eyeballs
Relationship with pay-tv operators
'4 billion reasons' not to cut the cord
Cannibalization of traditional business
The Game of Thrones TEst
April 7th, 2015 - HBO Now Launch