By Keach Hagey
Cablevision Systems Corp. became the first cable operator to
agree to offer HBO's new streaming service, HBO Now, to its
broadband customers, the companies announced Monday, signaling
HBO's first success in convincing a longtime partner that its new
service won't be cannibalistic.
The deal comes a week after HBO announced that Apple Inc. would
be its exclusive digital partner for launching HBO Now next month.
At the time, HBO officials underscored that the Apple deal wouldn't
preclude it from launching with traditional distributors as
well.
Since HBO first announced its plans last October to offer its
service for the first time outside the pay-TV bundle, the company
has emphasized that its first choice was to do so in partnership
with its longtime distribution partners that are responsible for
the vast majority of its revenue. But as Time Warner Inc. Chief
Executive Jeff Bewkes told investors at a conference last week,
some of these distributors "have been kind of negative about
it."
The deal announced Monday didn't include any details on pricing
or packaging. The service will be available in April in time for
the fifth season of "Game of Thrones."
"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, chief operating officer of
Cablevision, in a statement. "We are well-positioned to support HBO
Now and, as technology advances, Cablevision will continue to meet
the evolving needs of our customers."
In the past, HBO has said that it is aiming HBO Now at the
roughly 10 million households in the U.S. that have broadband but
don't subscribe to pay-television.
"We couldn't be more excited that our longtime partner has
joined us for the launch of HBO Now," said Tom Woodbury, HBO's
president of global distribution, in a statement. "We believe that
HBO Now will have great appeal to Cablevision's broadband
customers."
Cablevision has about 3 million subscribers throughout the
greater New York area.
Write to Keach Hagey at keach.hagey@wsj.com
Access Investor Kit for Apple, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0378331005
Access Investor Kit for Cablevision Systems Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US12686C1099
Access Investor Kit for Time Warner, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US8873173038
Subscribe to WSJ: http://online.wsj.com?mod=djnwires