(FROM THE WALL STREET JOURNAL 12/10/14)
By Keach Hagey and Amol Sharma
Time Warner Inc.'s HBO plans to team up with MLB Advanced Media
for the rollout of its stand-alone streaming service next year,
signaling that the premium cable channel is looking for some
outside help on the ambitious effort.
The changes prompted the departure of HBO's chief technology
officer, Otto Berkes, a former Microsoft Corp. executive and
co-founder of Xbox, according to a memo Mr. Berkes sent to HBO
staff on Tuesday.
The partnering with MLB Advanced Media essentially means the end
of HBO's internal effort to build a stand-alone online streaming
product, code-named "Project Maui." That project would have
required hiring several hundred engineers to build out the service,
a strategy favored by some at the company.
HBO Chief Executive Richard Plepler said "Project Maui" was only
one of several options considered for its "over the top" streaming
service.
"The option we chose instead was to enlist a highly skilled
partner in MLBAM who we are confident can help achieve our goal of
a robust stand-alone HBO streaming service," he said. "That
certainly doesn't diminish the terrific work done by our technology
team."
Fortune earlier reported plans of the MLBAM tie-up.
According to internal memos announcing the move, HBO appeared to
be aiming to roll out its stand-alone streaming product in April,
concurrent with the return of the new season of its blockbuster
hit, "Game of Thrones." Mr. Plepler declined to comment on that
timing.
Besides supporting Major League Baseball's digital offerings,
MLBAM has become a specialist in helping big media companies stream
their content online. The company is already supporting
Web-streaming services for the likes of ESPN and World Wrestling
Entertainment.
An MLBAM representative didn't respond to a request for
comment.
HBO relied on its own resources to develop HBO Go, the app that
carries its programming to tablets and smartphones. It was viewed
in the industry as a standard-setting product.
But managing Web-based services online is tricky for media
companies. Ensuring a high quality signal can be difficult,
particularly at times of heavy traffic on the wider Internet. HBO
has faced technology hiccups during highly anticipated TV events,
such as this past season's premiere of "Game of Thrones" and the
finale of "True Detective."
Mr. Plepler said Mr. Berkes's team has largely fixed those
problems. "Otto's team deserves enormous credit for resolving the
hiccups that impacted HBO Go in the past," he said.
In a note to staff, Mr. Berkes mentioned HBO's decision to use
an outside company to develop the streaming service.
"This is a change in direction from what I planned with HBO and
the approach will not utilize my overall capabilities," he said.
"Therefore, I feel that this is the right time for me to move on
from HBO so that I am able to fully pursue my passion building
world-class technology teams, products, and businesses."
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Joe Flint contributed to this article.
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