HBO’s Direct Model Will Succeed, Says Forrester’s McQuivey. Here’s Why
HBO Go viewership in a typical month comes in at roughly 13 million people, or 6% of US online adults, according to Forrester’s evaluation based on a survey of 4,700 US online adults.
This number is just one of the reasons why Forrester believes HBO will be successful with its direct subscription service coming in 2015. Plus the roughly 50 million HBO subscribers out of the digital family, and the further 38 million who currently pay for TV, watch TV shows online but do not watch HBO at all.
“Many snicker that HBO will fail because it is stuck between a pricing rock and a hard place,” writes analyst James McQuivey in his new research. “But these critics don’t get it. HBO won’t sell the same product direct that you can get today from cable. It will vary three specific values to create multiple price and packaging bundles: how much content is available, in what window, and at what price.”
In the research, McQuivey outlines three possible packages and pricing that Forrester expects HBO to offer direct in 2015 — either through a broadband package, or direct from HBO or another digital distributor like Amazon or Apple — as well as what HBO’s success will mean for the TV industry.
To learn more about this new research, visit the full report.