Posted by cageymaru 6:28 AM (CDT)
Friday May 05, 2017
Time Warner Inc. has decided to remove HBO from the Amazon Prime streaming service in 2018. This change stems from a change in perception of Amazon's streaming service as they now see it as a competitor. HBO's CEO Richard Pepler discussed how immensely popular older HBO shows were on the Amazon Prime streaming service. Amazon in 2014 was granted the right to stream finished shows that were 3 years out of their original run on HBO. This $250 million - $300 million deal doesn't make sense for HBO after analyzing the popularity of the shows. They have decided to play the long game and add them to the standalone HBO Now service as they see these older gems as added value to attract more consumers to their service.
"I don’t think you’ll see us extend or expand our library programming on Amazon beyond the end of next year," Plepler said. He cited the "enormous momentum" of sales through Amazon’s service set up to help market streaming offshoots of traditional TV channels such as HBO, Showtime and Starz.
Plepler said HBO Now was also seeing strong momentum in sales through DirecTV Now, the low-cost digital MVPD service that launched late last year by AT&T. AT&T and HBO parent Time Warner, of course, are in the midst of an $85.4 billion merger that is expected to close by year-end, as Time Warner chairman-CEO Jeff Bewkes reiterated on the call.