HBO: What’s Next in the Market?
In today’s market, more and more people depend on laptops, tablets, and devices to gain access to the TV land. Of course, there are still plenty who go in for televisions and cable, but HBO’s Chief Executive Officer says that it’s important to keep up with the times — according to FierceCable. CEO Richard Pleper spoke Thursday, saying that while HBO — subsidiary of Time Warner (NYSE:TWX) — isn’t planning on a cable network subscription targeting customers who utilize such devices yet, they are looking into the possibility.
“If the market changes, we are not going to be caught without the ability to pivot,” said Pleper, according to FierceCable. A move towards reaching a greater range of devices would line up with what Netflix’s (NASDAQ:NFLX) CEO, Reed Hastings, had predicted for HBO back in 2012.
It would also help the cable company to compete with an increasingly mobile and internet based television market. According to FierceCable, Netflix has been working with cable companies towards offering customers bundles in which they would purchase Netflix subscriptions alongside their normal TV packages. HBO has not committed to any such bundle, but isn’t limiting its options either.
“If the model changes, and that [bundle] makes sense down the road, we will have the ability to do what we need to do,” said Pleper — according to FierceCable. Some cable companies, such as Dish Network (NASDAQ:DISH), Comcast (NASDAQ:CMCSA), and Time Warner Cable (NYSE:TWC) are not helping the cause, unfortunately.
All three have been secretly charging customers for switching to less expensive cable packages rather than offering discounts to customers who remain loyal — a tactic which certainly doesn’t help companies compete with the increasingly popular streaming options offered online — and commercial free. Some companies, such as Comcast, have been looking to gain revenue by keeping advertisement relevant with older TV, in order to continue placing relevant commercials into older and stream-able shows. Comcast’s new tactic would help pull in extra money from ads seen during TV binges, which are becoming more and more common.