HBO gunning for cord-cutters with online service, but not yet for Canada

By Gadjo Cardenas Sevilla

Viewers have spoken and HBO has listened. The popular cable network announced yesterday that it will create a cable-free online service for customers in the USA. This means consumers no longer need to subscirbe to expensive cable packages that bundle a bunch of channels they aren't interested in just so they can watch Game of Thrones or True Detective.

"That is a large and growing opportunity that should no longer be left untapped," HBO's CEO Richard Plepler said. "It is time to remove all barriers to those who want HBO."

Canadians aren't likely to be enjoying this new online service anytime soon. Ongoing HBO contracts with Bell and Corus run until 2018, which means that it is unlikely that the current model for watching HBO shows in Canada will change until then. HBO's move to a streaming service/online service is a significant one that will affect the industry. For makers of set-top boxes like Apple, Roku, Chromecast and others, getting access to HBO content will be potentially game changing for keepng existing users and grabbing new ones.

Other networks like Showtime, Starz and AMC might opt to employ similar strategies. Current streaming video darling Netflix, whose stock got battered yesterday because of a dropoff in subscribers, now sees real competition and various cable conglomerates now have to react to HBO being made available elsewhere without the requirement of subscriptions.

Source: Deadline.com