HBO is an American premium cable television network that produces high-quality original content such as award-winning series and documentaries. It launched in 1972 with a mix of movies and sports, and expanded to 24/7 programming in 1981. Notable original series in the late 1990s included Oz, Sex and the City, and The Sopranos. HBO's business model relies on $1.4 billion in annual subscriber fees, and uses its premium content to build brand awareness and drive merchandise and DVD sales. In 2010, HBO launched its HBO Go streaming service to offer subscribers access to content on multiple platforms. However, Netflix has become a strong competitor, with its U.S. subscriber numbers surpassing H

2. CONTENT
 HBO
 Itt´s not tv. It´s HBO
 Timeline
 The market
 Competitors
 The Business Model
 The value proposition
 Where does the money comes from
 HBO Go and the new value proposition
 Strategy overview

3. It’s not TV. It’s HBO
 An American premium cable and
satellite TV network.
 Second largest premium channel
in the U.S: 41 million pay
television subscribers.
 Broadcasts in at least 151
countries covering approximately
114 million subscribers worldwide.
 Produces high quality and
original content: Movies, Emmy
award winning series and
documentaries

4. HBO timeline
1997 - 1999
First original drama Oz, Sex and
the City, and The Sopranos
premieres.
1972
HBO launched the mixture of
movies and sporting events
the basic formula.
1981
The channel expands to a 24/7 programming
schedule.
1983
1973
HBO is acquired by Time Life and
becomes the fastest growing pay TV
service in the US.
2010
2013
Netflix's U.S. subscription
numbers passed HBO
Five year agreement with
BSkyB, HBO programming
airing in the UK
First original made-for-TV movie The Terry Fox
Story and first children’s show on the channel,
Fraggle Rock.
2001 – 2002
Band of Brothers, the most expensive television
miniseries ever made by a television network. The
Wire, which cements the channel’s reputation as a
home for high-quality drama.

5. Business Model

6. HBO Business Model
Product
Placement
Brands
Brand
Awareness
Integrated Ads
&
Sales
Premium
Content
DVD/Merch
andising
Subscribers
$1.4 billion in
subscriber fees
($15 per month)
Fans Effect & Sales

7. Disruptions

8. Premium Targeting
Content intermediation 1972
 Different channels for different
audiences
 TV as a niche market. Long Tail
 Subscription fee
#1

9. Content Quality
#1
Content creator 1983
 High-end
television writers
 Expensive
Content A season
costs between
$50 - $60 million
($5 million per
episode)
 Emmy Award nominations and wins
 Series around several skilled actors
 The inclusion of taboo contents
 Hybridization of genres

10. Multiplatform & interaction #3
Interaction, communities and customization 2010 (HBO GO)
VALUE PROPOSITION
 Cheaper fee
 No need for tv broadcasts
 Platform diversity
 Special features (behind the
cameras, characters
information, etc.)
 Launched in 2010 as a web page
 On Apple platforms 2011
 Interaction (+content)

11. Business Model Evolution
#1
CONTENT
CREATION
CONTENT
PACKAGING
CONTENT
DISTRIBUTION
USER
INTERFACE
END USER
#2
CONTENT
CREATION
CONTENT
PACKAGING
CONTENT
DISTRIBUTION
USER
INTERFACE
END USER
#3
CONTENT
CREATION
CONTENT
PACKAGING
CONTENT
DISTRIBUTION
USER
INTERFACE
END USER

12. The NETFLIX issue
Netflix was in talks with domestic cable
providers to place the service in Cox and
Comcast's channel lineup.
HBO Go, the network's multiplatform
online service that gives subscribers full
access to most of the network's series
archive and all current movies and
specials through laptops, smartphones,
tablets, Roku boxes and Apple TVs.
‘…The goal is to become HBO faster than HBO can become us…”’
‘…Ted Sarandos, Netflix’s chief content officer…

14. THANK YOU