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    HBO Now has 800,000 paying subscribers since April launch

    By SHOOTUpdated:No Comments888 Views
    In this March 9, 2015, file photo, HBO CEO Richard Plepler talks about HBO Now for Apple TV during an Apple event in San Francisco. (AP Photo/Eric Risberg, File)
    NEW YORK (AP) --

    HBO Now, the standalone online version of the premium TV channel, has gained about 800,000 paying subscribers since it launched in April, contributing significantly to the 2.7 million net new HBO customers last year.

    The figure was revealed by HBO CEO Richard Plepler in a conference call following the release of parent Time Warner Inc.'s quarterly earnings results.

    The gains didn't seem to wow investors, as Time Warner shares fell 3.5 percent to $61.02 in afternoon trading Wednesday.

    Stifel analyst Benjamin Mogil said the 3.2 percent gain in HBO subscriber revenue was lower than the 4.7 percent rise that Wall Street expected.

    Initially available for $15 a month only on Apple TV and other Apple devices, HBO Now has steadily rolled out to other platforms including Amazon, Roku, Google's Chromecast and certain smart TVs.

    Plepler said the service has yet to be offered on two major game platforms – PlayStation and Xbox, which accounts for 20 percent of viewing of the HBO Go app that is available to traditional HBO subscribers. Nor has it debuted new content it is investing in, including shows by Jon Stewart and Bill Simmons and a news show by the upstart network Vice.

    "That of course will catalyze a great deal of marketing, digitally and otherwise, which we think will drive subscriptions," Plepler said. "So, we are very excited about where we are."

    For Time Warner as a whole, revenue in the quarter through December fell 6 percent to $7.08 billion, below the $7.55 billion expected by analysts polled by Zacks. Earnings of $1.06 per share beat the $1.01 that analysts expected.

    Tags:HBOHBO Now



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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