# About-Face! HBO Announces Streaming Service



## Todd Anderson (Jul 24, 2009)

Up until last week, reigning premium cable champion HBO had rejected any notion of creating its own standalone streaming service. Ignoring the technicality of HBO GO's existence (an online service for cable subscribers), HBO hasn't shown any sign of budging. Outsiders, such as cord cutters, OTA viewers, and basic cable subscribers simply have no way of watching HBO's current premium content.










On October 15th, HBO chairman and CEO Richard Plepler announced that HBO will turn its ship to catch stronger winds. The company revealed plans to offer a stand-alone streaming service in 2015. Several months ago, HBO was humbled by news that Netflix had narrowly posted larger subscription revenues for the first time ($1.146 billion to $1.141 billion), and the company is keenly aware that a growing broadband landscape only favors Netflix going forward.

According to Plepler, the United States has roughly ten million broadband-only homes, a number that is expected to rapidly increase in the future. “That is a large and growing opportunity that should no longer be left untapped,” said Plepler. He added: “It is time to remove all barriers to those who want HBO.”

Working with current partners, HBO will launch a U.S. only service some time next year. Plepler says the company will also explore alternative models with new companies. “All in, there are 80 million homes that do not have HBO and we will use all means at our disposal to go after them,” proclaimed the chairman. 

HBO has not released any pricing or hardware details.

This isn’t the kind of news HBO’s biggest rival wants to hear. Netflix is well aware of HBO’s prowess and quality of content. In fact, last August Netflix CEO Reed Hastings publicly acknowledged that “HBO rocks,” citing their Emmy awards and profit margins. In the company’s most recent letter to investors, HBO’s streaming announcement was directly addressed.

“Starting back in 2011 we started saying that HBO would be our primary long-term competitor, particularly for content. The competition will drive us both to be better. It was inevitable and sensible that they would eventually offer their service as a standalone application. Many people will subscribe to both Netflix and HBO since we have different shows, so we think it is likely we both prosper as consumers move to Internet TV. “

Unfortunately for Netflix, recently announced subscriber growth numbers paired with HBO’s big move caused their stock to instantly fall from $446 to $332 (a number that now hovers around $360).

While damaging to Netflix, HBO’s arrival to the streaming is a win for media consumers (especially those kicking cord-cutting tires). More options and better access will only help to push the future of streaming media to higher places.

_Image Credit: HBO_


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## NBPk402 (Feb 21, 2012)

I'm down as long as they don't charge too much for it... I think $10-15 max a month would be reasonable. :T


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## Todd Anderson (Jul 24, 2009)

They'll need to stay competitive with Netflix, that's for sure.


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## JQueen (Jan 11, 2012)

I'm definitely intrigued. Cutting the cable almost 2 years ago was the best thing ever. Between Hulu /Netflix and my blu ray collection .. The only thing I really miss is espn


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## tripplej (Oct 23, 2011)

I cut cable/sat long time ago. I use OTA for local channels and use Amazon prime and netflix for getting movies/tv shows. With amazon prime, I get all of the older HBO shows so I am good. Having HBO by itself is great news to get the latest shows from HBO.

The one thing I always hated when I had cable/sat, was that I would pay for all the channels that the service provided bundled but in reality, all I watched were few channels. 

HBO moving into streaming is good news.


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## Todd Anderson (Jul 24, 2009)

JQueen said:


> I'm definitely intrigued. Cutting the cable almost 2 years ago was the best thing ever. Between Hulu /Netflix and my blu ray collection .. The only thing I really miss is espn


This is what is stopping me...sports. Cable is the only way for me to access our regional sports network for Major League Baseball...something I can't live without!


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## JBrax (Oct 13, 2011)

Todd Anderson said:


> This is what is stopping me...sports. Cable is the only way for me to access our regional sports network for Major League Baseball...something I can't live without!


 ^^^^ +1


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## asere (Dec 7, 2011)

Good news for HBO programing but not so good if you watch ESPN, E, Disocovery, VH1 etc. Can't cut the cord then.


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## phillihp23 (Mar 14, 2012)

Todd Anderson said:


> This is what is stopping me...sports. Cable is the only way for me to access our regional sports network for Major League Baseball...something I can't live without!


+1 Sports is why I didn't cut the cord also. A couple years back I was about too, but I couldn't find a way to get the sports channels.


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## JQueen (Jan 11, 2012)

My parents have direct tv so I just pay them for Sunday ticket and watch on my Ipad or mirror it to the tv through my apple. That's really the only reason I'm ok with not having sports channels. Only bummer is I miss the Monday night game.


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