In a potential break with the traditional cable model, HBO is planning to create a stand-alone service separate from pay cable and satellite service next year. Details have not been revealed on launch date or how much it will cost.
About 30 million households pay for HBO, leaving more than 80 million who currently have no direct access to "Game of Thrones," "Veep" and "True Detective."
"HBO and ESPN are the two main reasons why people have cable and satellite TV," says Forrester analyst James McQuivey tells Associated Press. "The whole industry has eyed them for years nervous that one day they would decide to do exactly what (HBO) said they'll do in 2015. We don't know until we see pricing and packaging how rapidly this will force a change in the way pay TV operators work, but it will definitely force a change.
"That is a large and growing opportunity that should no longer be left untapped," CEO Richard Plepler said at parent Time Warner Inc.'s investor meeting in New York. "It is time to remove all barriers to those who want HBO."
This could certainly encourage people (especially those who don't particularly care for live sports) to cut the cord, which has been gradually happening. More worrisome: it probably makes it even tougher to convince younger people to even sign up for cable or satellite, whose monthly rates have grown far quicker than inflation in recent years.
Netflix, on the other hand, keeps on growing steadily and now has 36 million subscribers - more than HBO.
Speaking of Netflix, the network is not only growing original programming but buying up more older programming as well. It announced today that all 236 episodes of "Friends" will be ready for streaming on January 1, 2015.
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