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HBO Not Opposed to Internet-Only Business Model

by Jacob Kleinman | March 7, 2014March 7, 2014 8:00 pm PDT

HBO Go logo

Despite the cries millions of cord-cutters crying out for HBO service without having to be tied to a cable provider, the company isn’t ready to ditch its existing business model just yet. Speaking at the Morgan Stanley Technology, Media and Telecom conference this week, HBO CEO Richard Plepler revealed the cable network expects to make the switch to an Internet-only model at some point in the future and added that HBO will be ready when the time is right, DigitalTrends reports. The time, unfortunately, just isn’t right now.

For the past few years many have hoped the company would offer up HBO, and ultimately HBO Go, as a stand-alone subscription service. HBO has resisted that path, however. It might seem like an easy way to increase profits, but the company depends on providers to push its channel out to new customers. Offering an Internet-only app could ruin HBO’s relationship with the cable companies that help bring in most of its revenue.

So don’t expect a a stand-alone HBO service anytime soon, even if the company is ready to go it alone. The firm made record profits in 2013 with 2 million new subscribers and isn’t expecting to do any worse in 2014. One day though, when the pros outweigh the cons we’ll get our Internet-only HBO service.

Digital Trends

Jacob Kleinman

Jacob Kleinman has been working as a journalist online and in print since he arrived at Wesleyan University in 2007. After graduating, he took a...