HBO NOW attracts 800k subs
February 11, 2016
Richard Pleper, Chief Executive of HBO, has revealed that HBO NOW, the broadcaster’s OTT platform, has attracted some 800,000 paying subscribers, with Jeff Bewkes, Chairman and CEO of HBO’s parent company Time Warner, suggesting the service was a significant contributor to HBO’s 2.7 million domestic subscriber additions in 2015.
The figures were highlighted during Time Warner’s Fourth Quarter 2015 Earnings Call, during which Bewkes suggested that the combination of an even stronger original programming line-up and best selection of hit Hollywood movies and ever improving digital products would drive continued subscriber growth both at HBO NOW and with its traditional distributors.
Howard Averill, CFO, said that Time Warner was pleased with HBO NOW’s early progress, with its contribution to subscription revenue increasing sequentially throughout the year. “As we move into 2016, we expect the revenue contributions from HBO NOW to increase further as we rollout new programming and expand distribution allowing us to invest even more aggressively in marketing the product and later in the year, we expect to begin renewing some of our affiliate deal, which should result in improved monetisation of our subscriber base,” he advised.
Pleper noted that HBO NOW was a relatively recent service launch, with the operation learning all the time. “We are at this eight months; we are at about 800,000 paying subscribers. We see an enormous amount of opportunity ahead,” he declared.
“HBO NOW is an additive part of our growth strategy. And what we have seen in the ecosystem where we see the vast amount of growth is that we have huge opportunities there as well. So we are going to work on a multifaceted way to expand our sub base and to expand our sub revenue,” he suggested.