The announcement that is likely to be the beginning of the end for traditional subscription based cable and broadcast networks came today as HBO put a stake in the ground to say they would be offering a direct to consumer online offering in the U.S. in 2015. The announcement saw Netflix stock price immediately fall 3.1%.
While there is the likelihood that the estimated 30,000 Netflix subscribers would also take up this service, bypassing the restrictions, they may not need to with HBO indicating the service has it’s eyes firmly set on international markets outside of the States.
“In 2015 we will go beyond the wall and launch a standalone over-the-top service with the potential to produce hundreds of millions of dollars of additional revenue. And the international possibilities could be just as large, if not larger,” HBO chairman and CEO Richard Plepler said during a presentation at Time Warner’s investor day. Continue reading »