HBO Itt´s not tv. It´s HBO Timeline

The market Competitors

The Business Model The value proposition Where does the money comes from

HBO Go and the new value proposition

Strategy overview

CONTENT

It’s not TV. It’s HBO An American premium cable and

satellite TV network.

Second largest premium channel in the U.S: 41 million pay television subscribers.

Broadcasts in at least 151 countries covering approximately 114 million subscribers worldwide.

Produces high quality and original content: Movies, Emmy award winning series and documentaries

1972 HBO launched the mixture of movies and sporting events the basic formula.

1973 HBO is acquired by Time Life and becomes the fastest growing pay TV service in the US.

1981 The channel expands to a 24/7 programming schedule.

1983 First original made-for-TV movie The Terry Fox Story and first children’s show on the channel, Fraggle Rock.

1997 - 1999First original drama Oz, Sex and the City, and The Sopranos premieres.

2001 – 2002Band of Brothers, the most expensive television miniseries ever made by a television network. The Wire, which cements the channel’s reputation as a home for high-quality drama.

2010 Five year agreement with BSkyB, HBO programming airing in the UK

2013Netflix's U.S. subscription numbers passed HBO

HBO timeline

Business Model

Premium Content

Brands

SubscribersDVD/Merchandising

HBO Business Model

$1.4 billion in subscriber fees ($15 per month)

Integrated Ads &

Sales

Fans Effect & Sales

Brand Awareness

Product Placement

Disruptions

Premium TargetingContent intermediation 1972

#1

Different channels for different audiences

TV as a niche market. Long Tail

Subscription fee

Content creator 1983

The inclusion of taboo contents Hybridization of genres

Content Quality

Emmy Award nominations and wins Series around several skilled actors

High-end television writers

Expensive Content A season costs between $50 - $60 million ($5 million per episode)

#1

Interaction, communities and customization 2010 (HBO GO)

VALUE PROPOSITION

Cheaper fee

No need for tv broadcasts

Platform diversity

Special features (behind the cameras, characters information, etc.)

Interaction (+content) Launched in 2010 as a web page On Apple platforms 2011

#3Multiplatform & interaction

CONTENT CREATION

CONTENT PACKAGING

CONTENT DISTRIBUTION

USER INTERFACE END USER

Business Model Evolution

CONTENT CREATION

CONTENT PACKAGING

CONTENT DISTRIBUTION

USER INTERFACE END USER

CONTENT CREATION

CONTENT PACKAGING

CONTENT DISTRIBUTION

USER INTERFACE END USER

#1

#2

#3

Netflix was in talks with domestic cable providers to place the service in Cox and Comcast's channel lineup.

HBO Go, the network's multiplatform online service that gives subscribers full access to most of the network's series archive and all current movies and specials through laptops, smartphones, tablets, Roku boxes and Apple TVs.

‘…Ted Sarandos, Netflix’s chief content officer…

‘…The goal is to become HBO faster than HBO can become us…”’

The NETFLIX issue

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