Though it was widely rumored that HBO would introduce its direct-to-consumer OTT HBO Now service at $15 a month, it still came as somewhat of surprise. The price is cheaper than many operators offer HBO for (for example, Dish Network currently charges $19 a month.) Will and I discuss the ramifications for the pay TV industry, Netflix and HBO.
Both of us agree that, at this price, HBO should do well online, provided all the content is made available in timely fashion. However, the potential for disruption is large, particularly as it makes it more possible for people to consider cutting the cord. HBO is asking some very big questions about the existing pay TV model with HBO Now, and it is far from clear how things will shake out over time.
Time: 24 minutes