HBO wanted more leverage with the cable guys. Apple is happy to help.

Re/code:

OK, Comcast: Your move.


That’s the message HBO CEO Richard Plepler was sending yesterday to the cable giant and the other big pay-TV distributors, when he announced he was going to start selling subscriptions with Apple.


HBO’s plan to sell a standalone version of the service — HBO Now, for $15 a month — using Apple as its exclusive digital launch partner is big news. Remember, though, that it’s only half of the story: Plepler wants to use his new digital service to create a new revenue stream, and perhaps a life raft. But he also wants to use it as a lever to get more money out of his existing business with the pay-TV companies, which generated $5.4 billion last year.

It will be interesting to see how this all plays out. HBO exclusivity with Apple is for a rumored three month time frame.



5 thoughts on “HBO wanted more leverage with the cable guys. Apple is happy to help.”

  1. I think $15/mo is a little high, but I’d be willing to sign up for a while just to help scare the crap out of Comcast/Whomever.

    Disclaimer: I don’t have cable, dish, or Internet at home, or even a mobile phone. This would be just for fun. 🙂 (I could still use the subscription other places.)

  2. HBO was afraid of being marginalized by Netflix on one side and the cable providers on the other side.

    They’re probably tired of having to leverage their back catalog through third parties like Amazon Prime.

  3. netflix ceo hastings even said their job is become hbo before hbo becomes netflix. netflix has the distribution and price, but their original, quality content is behind hbo’s.

    hbo’s price is high. even $12/mo seems better than $15.

  4. I actually expected $20/month, so it seems a bargain to me considering the back catalog of shows to view. Each to his and her own it seems.

  5. The impression I got from the presentation is that HBO Go includes the movies that HBO has at that moment. $15/mo for high-quality original content (Game of Thrones et. al.) plus a bunch of movies that I otherwise would have to rent is a damned good deal.

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