Pay-TV operators lower HBO price ahead of a la carte launch

A number of pay-TV operators have lowered the price on HBO as the premium programming provider prepares to launch an a la carte SVOD service.

TV Predictions has assembled a nice roundup of the price cuts, which start with a significant trim by the No. 1 operator, Comcast (NASDAQ: CMCSA), to $15 a month from $18.95. (The blog says it obtained a letter to Comcast subscribers outlining this price reduction.) Subscribers who order HBO from Comcast online can get the networks for $10 a month.

A number of other operators have cut HBO's price as well:

> Verizon (NYSE: VZ) has extended its $9.99-a-month promotion for the premium channel from six months to 12 months.

> Time Warner Cable (NYSE: TWC) is discounting HBO from $15.95 to $9.99 if subscribers order online.

> Cox Communications is now offering HBO for $10 a month for the first six months.

In December, Fortune magazine obtained an internal HBO memo indicating that the new SVOD service will be technologically managed by Major League Baseball's Advanced Media division, and that it could launch as soon as April with a price point of around $15.

At that time, HBO CTO Otto Berkes left the company. He was followed out the door by two more senior HBO technology executives this week.

For more:
- read this TV Predictions post

Related links:
Starz CEO: Premium channels are basically SVOD providers
HBO's OTT play has traditional TV revving its online engines
HBO tech chief Berkes quits as network turns to MLB to launch new streaming service

Suggested Articles

Alan Wolk, co-founder and lead analyst at TV[R]EV, explores what vMVPDs like YouTube TV need to do as their prices approach legacy cable levels.

It’s been almost a year since we last broke down the timeline for price increases at YouTube TV, AT&T TV Now and other virtual MVPDs.

Sling TV is responding to new price increases from competitors YouTube TV and fuboTV by offering its subscribers a one-year rate guarantee.