& cplSiteName &

HBO Will Go OTT in 2015

Mari Silbey
10/15/2014
50%
50%

"It's time to remove all barriers to those that want HBO."

With those words, Home Box Office Inc. (HBO) Chairman and CEO Richard Pleper this morning announced at a Time Warner Inc. (NYSE: TWX) investor meeting this morning that his company will introduce an over-the-top HBO service in the US next year. Initially, the new service will be delivered through pay-TV partners in an attempt to reach the millions of broadband-only subscribers. Pleper said HBO will work through its existing distributors (i.e. with cable and telco TV providers), but will also explore opportunities with new partners as well.

Pleper added that HBO will also launch its OTT service in some additional countries later next year. (See HBO Braces to Battle Netflix in Europe, Comcast Set to Bundle Broadband & HBO and Time Warner Shakes Up the Bundle.)

The introduction of a standalone product isn't the only way that HBO intends to boost its profits in the future. The company also plans to negotiate better terms with pay-TV distributors to reduce the number of non-revenue generating subscribers currently on the books. And, for the first time in 20 years, HBO plans to run a brand-specific marketing campaign in an effort to reach new audiences.


Want to know more about OTT services? Check out our dedicated OTT content channel here on Light Reading.


On the web, HBO will find itself going head to head with Netflix Inc. (Nasdaq: NFLX), but Pleper is highly optimistic about the network's potential. He noted that HBO had commissioned research showing that when people learn about everything that HBO has to offer, non-subscribers are interested in signing up.

Pleper offered no specific information on pricing or distribution for the new standalone HBO service, saying that for competitive reasons he couldn't reveal details yet. However, he was demonstrably confident that the new OTT offering would be compelling, saying "this will be transformative for our company."

— Mari Silbey, special to Light Reading

(15)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Page 1 / 2   >   >>
cnwedit
50%
50%
cnwedit,
User Rank: Light Beer
10/16/2014 | 11:25:39 AM
Re: This is the time to MONETIZE OTT
This entire thread is the perfect example of what's wrong with the current PayTV model. We all see it from our individual perspective but no one has a view of a better future.

At this point, my primary TV set has four different inputs and what we watch at night depends on those inputs -- payTV (cable), Roku device, game system and BluRay player. Oh, and each of the latter three has an Internet connection.

Yet when I wanted to watch the last three episodes of a show from last year, I wound up getting a one-week free membership to Hulu Plus just to view those (cancelled it immediately). 

And I'm seriously considering getting the NHL package to watch hockey on the road. 

The ability to personalize the TV experience was something a few startups tried several years back but they ran afoul of content licensing and I still think that remains the biggest hurdle. 

There's a reason a growing number of cable and telco operators view video as a lost cause and are emphasizing their broadband connections. 
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
10/16/2014 | 11:18:04 AM
Re: This is the time to MONETIZE OTT
There's a ton of creative destruction out there, but not much in the way of creative construction. Some people may really want to spend significant amounts of time and energy pursuing content. Others just want to turn the idiot box on and watch something/anything. Producers of video content should be mindful of what happened to the music business thanks to digital disruption. I think they are, but they may not have figured out a surefire way to avoid an unfavorable outcome.
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
10/16/2014 | 10:57:16 AM
Re: This is the time to MONETIZE OTT
 

Kbode,

I rechecked iTunes and current episodes of the Big Bang Theory are going for $2.99 in HD and $1.99 in SD.

seven
KBode
50%
50%
KBode,
User Rank: Light Sabre
10/16/2014 | 9:15:46 AM
Re: This is the time to MONETIZE OTT
The thing I don't like is the fractured nature of these services. If I like one show, I have to buy Netflix. If I want Game of Thrones, I have to buy HBO GO (I'd bet that Amazon Prime deal goes away once their standalone option launches). In the end if I'm paying a half dozen services just to see all the shows I want, how is this going to be better than cable long term? It's an obvious strategy from inside one company, but when considering the overall battle against piracy I find it problematic.
cnwedit
50%
50%
cnwedit,
User Rank: Light Beer
10/16/2014 | 9:00:26 AM
Re: This is the time to MONETIZE OTT
Seven,

I'd agree that consumers want to pay for only what they want to watch, but if we move to that model, the current content creation and distribution model falls apart. 

It's falling apart anyway, as the old advertising model disintegrates, so maybe this is the time to say, to hell with it, let's find some totally new way of doing things. 

 

Carol 
brooks7
50%
50%
brooks7,
User Rank: Light Sabre
10/16/2014 | 12:53:58 AM
Re: This is the time to MONETIZE OTT
HBO gets results from Neilson and has for years.

Carol,

Why buy a channel?  I really want to buy shows. I don't want to pay for "True Blood" but really want "Game of Thrones".  

The ability to execute on content is why the content business is so different than the network business.  If you build network capacity, it is highly likely that over some period of time you will make a profit on your costs.  The same is not true on Network Product Development and even less so on Entertainment (Movies, Games, TV).

seven

 
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
10/15/2014 | 9:57:26 PM
Re: This is the time to MONETIZE OTT
This is a situation similar to Hollywood in the 1970s...when the Studio System gave way to independent producers, using the "network" (move theater chains) to get revenue, but also taking risks individually, on themselves.  
jabailo
50%
50%
jabailo,
User Rank: Light Sabre
10/15/2014 | 9:55:01 PM
Re: This is the time to MONETIZE OTT
It's funny because wasn't this how the Internet was originally built.  Content providers (webmasters) got some low cost technology and put text directly into the hands of the public.  Somehow this all evovled into various centralized Portals when it came to paid or DRM'd media.

But the idea of the cloud, and now SDN, now lets you build your own cloud piecemeal.  The end result?   Low cost or even high cost entry for the Content Creator, who can cobble together just what he needs to get his product to market.  Directly.

 
cnwedit
50%
50%
cnwedit,
User Rank: Light Beer
10/15/2014 | 9:40:13 PM
Re: This is the time to MONETIZE OTT
Excellent point, Daniel, and I can see how that is a contributing factor. This just seems to argue further that asking people to pay a lot of money for a huge number of channels - most of which they don't ever watch - is a doomed model. 
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
10/15/2014 | 8:29:27 PM
Re: This is the time to MONETIZE OTT
This is HBO going head to head with Netflix. I have continued to notice that Netflix is producing its own shows based of its analytics on what people watch. I'm pretty sure this is working really well for them, and that HBO wants more insight on what kind of shows to produce. 

This is one of the biggest money losers in content, having a show fail. And it happens so often, I think that as we continue to move towards streaming and digital based options the data on what people actually like continually gets better. 
Page 1 / 2   >   >>
From The Founder
Either we perform a complete 'factory reset' on the way the telecom industry creates and deploys virtualization, or we face the consequences.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
The Urgency of Commercial 5G Services

4|26|17   |     |   (0) comments


The progress of 5G has been closely monitored in the industry. At the 2017 Brooklyn 5G Summit, the sense of urgency for a commercial 5G launch had started to surface among operators.
Women in Comms Introduction Videos
How Diversity Helps Comcast Mirror Its Customer Base

4|26|17   |   2:55   |   (0) comments


Diversity brings innovation, creative ideas and a way to reflect the broad spectrum of your customer base, Comcast Director of Customer Experience Jenelle Champlin says.
LRTV Huawei Video Resource Center
Mobile Operators & Video

4|25|17   |     |   (0) comments


Ovum's Ed Barton discusses the latest mobile operator strategies for mobile video.
LRTV Custom TV
Infinera Introduces Instant Network

4|20|17   |     |   (1) comment


Mike Capuano, vice president of marketing at Infinera, discusses the advancement from Instant Bandwidth to new Instant Network capabilities, which include Bandwidth License Pools, Moveable Licenses and Automated Capacity Engineering (ACE).
Women in Comms Introduction Videos
Vodafone's Eubank on Sponsors, Mentors & Moving On Up

4|19|17   |   4:25   |   (0) comments


Vodafone America's Head of Operations Kimberly Eubank breaks down the difference between a sponsor and a mentor and shares why both made a big difference in her career.
LRTV Custom TV
NYC Auto Show: Are We Smart Yet?

4|18|17   |     |   (0) comments


The auto industry is facing some big transformations as electric vehicles, autonomous technology and connected cars are seen as the future of the industry. During the much-anticipated NY international auto show, there was an emergence of new technology and mobility service on the show floor. Aside from performance, brands like Lincoln, Hyundai, Honda, Mercedes and ...
LRTV Huawei Video Resource Center
The Impact of Video

4|18|17   |     |   (0) comments


David Mercer from Strategy Analytics discusses the impact of video on current strategies.
LRTV Custom TV
Pardeep Kohli Discusses Network Transformation & the Market Opportunity for the 'New' Mavenir Systems

4|13|17   |     |   (0) comments


In a brief discussion at MWC 2017, Heavy Reading analyst Adi Kishore talks to Pardeep Kohli, CEO, Mavenir Systems about the creation of the 'new Mavenir' and some of the key challenges facing operators in today's market. A key theme of the discussion centers around operator need for software-only, virtualized solutions and how they will need to adapt to ...
Women in Comms Introduction Videos
Tech Maverick Shares Her Tips for Gender Inclusivity

4|12|17   |   7:28   |   (0) comments


Wendy Hall Bohling, a corporate escapee, author and gender exclusivity consultant, tells her story of sexism, bias and progress along the road to gender equality in the workforce.
LRTV Huawei Video Resource Center
Huawei at MWC 2017

4|11|17   |     |   (0) comments


At Mobile World Congress 2017, the biggest mobile industry gathering of the year, Huawei showcased its new innovations and solutions with the theme "Open Road," which focuses on cloud, 5G, operation transformation, videos and consumer-oriented products. Its campaign has been recognized by three awards given by GSMA.
LRTV Custom TV
China Telecom NFV Infrastructure on RSD

4|6|17   |     |   (0) comments


Lynn Comp, senior director of market development of Intel, is joined by Chong Zhang, storage engineer at Inspur and Ou Li Yan, architect for technology strategies of China Telecom, for a discussion of what NFV brings.
LRTV Custom TV
Nokia's IMPACT Software Demo

4|6|17   |     |   (0) comments


Khamis Abulgubein of IoT market development at Nokia demonstrates IMPACT (intelligent management platform for all connected things), a software solution with a horizontal approach to managing any device on any application.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Brazos Hall - Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Surprise! AT&T Markets 4G Advances as '5G Evolution'
Dan Jones, Mobile Editor, 4/25/2017
Did Verizon Outbid AT&T for Straight Path?
Dan Jones, Mobile Editor, 4/25/2017
Netflix Set to Enter China
Mari Silbey, Senior Editor, Cable/Video, 4/25/2017
First Year TIPs the Scale Toward Success
Denise Culver, 4/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.