Big changes for HBO? HBO was one of the crown jewels for AT&T when they acquired Time Warner for $85.5B. Now the question is what changes are coming now that it is part of the AT&T family.
Key goal: Increase the amount of time that subscribers spend on the platform through the increased production of content.
Quote from John Stankey- CEO @ Warner Media:
“It’s going to be a tough year… It’s going to be a lot of work to alter and change direction a little bit.”
“We need hours a day,” Mr. Stankey said, referring to the time viewers spend watching HBO programs. “It’s not hours a week, and it’s not hours a month. We need hours a day. You are competing with devices that sit in people’s hands that capture their attention every 15 minutes.”
1) Non-U.S. — 88M (62%)
2) U.S. — 54M (38%)
3) Total — 142M
HBO subscribers (U.S. only):
1) Traditional — 49M (91%)
2) Online — 5M (9%)
Potential setback: Justice Department appeals Time Warner-AT&T merger approval
Flashback #1: Streaming-only homes drive 5M increase in HBO Now subs
It took HBO 2 years to reach 2M subscribers. They added the next 3M in 1 year!
Higher margin. Cable companies keep ≈ 50% of the monthly HBO fee. This means that HBO is keeping a greater share of the subscription revenue from their direct customers.
Flashback #2: ‘Game of Thrones’ Finale Sets Ratings Record
Linear TV vs. Streaming:
1) Linear TV — 12.1m (73%)
2) Streaming — 4.4m (27%)
3) Total — 16.5M
How does this compare to an event like the Super Bowl?
1) Super Bowl: 113m (7X)
2) Game of Thrones: 17m
1) Super Bowl: 111m (9X)
2) Game of Thrones: 12m
1) Super Bowl: 2m
2) Game of Thrones: 4m (3X)
Share from Streaming:
1) Super Bowl: 2%
2) Game of Thrones: 27%