Cablevision (NYSE: CVC) has become the first MVPD to embrace HBO's new a la carte streaming product, offering HBO Now to its Optimum broadband customers as an integrated service.
Launching in April, HBO Now is the first service from the Time Warner Inc.-owned premium network not to require a video subscription.
HBO Now is marketed as a standalone service, running on Apple TV streaming devices, for $14.99 a month. Cablevision, however, said it will provide "pricing and other particulars" for the product that's marketed through its Optimum service in the coming weeks.
In launching the OTT service, HBO has struggled to figure out a new promotional strategy that doesn't rely on cable providers. The Cablevision deal suggests HBO may be figuring out how to evolve its relationship with its long-term MSO partners in an era in which broadband services are growing faster than pay-TV.
Certainly, the deal seems to fit Cablevision's stated strategy of emphasizing data services over video.
"As New York's premier connectivity company, we are enabling Optimum Online customers to enjoy content in any way they choose to receive it," said Kristin Dolan, Cablevision chief operating officer said: "We are well-positioned to support HBO NOW and, as technology advances, Cablevision will continue to meet the evolving needs of our customers."
- read this Cablevision press release
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