HBO will soon launch its standalone streaming service called HBO Now.
According to a report by the International Business Times the service could launch next month in time for the season five Game of Thrones premiere on April 5.
The subscription-based service will allow users in the US to watch shows online without the need to pay for cable.
HBO is expected to launch the service in time for the new season of the critically acclaimed show “Game of Thrones”.
Over the past couple of years there’s been a trend of people have abandoning their home TV subscriptions in favor of internet-video streaming services.
Most of HBO’s business model is based on cable TV subscribers paying for packages to watch their favorite shows. A business model shows how a company creates value for itself while selling goods or services to customers.
With fewer people using cable it is not surprising that the company would try and tap into the increasingly popular internet-video streaming business.
Netflix is currently the number one player in the market and it is going to be tough for HBO to compete especially given that HBO Now will cost more than Netflix.
HBO’s service will cost $15 per month, which is a fair bit more than what Netflix charges, of between $8 to $12 a month.
HBO is working with a range of cable and internet providers to launch the service.
IBT said:
“HBO’s corporate parent, Time Warner Inc., will rely on a whole new line of distributors (e.g., Apple TV, Roku, Xbox, PlayStation, Amazon, etc.) to help market HBO Now to an estimated 10 million U.S. broadband subscribers who do not pay for a cable TV bundle,”
HBO first announced plans to launch a the streaming service in October.
“We will work with our current partners. And, we will explore models with new partners,” HBO chairman and CEO Richard Plepler said at the time. “All in, there are 80 million homes that do not have HBO and we will use all means at our disposal to go after them.”
