FT: HBO Mulling Broadband Channel
The higher-ups at Time Warner-owned HBO are said to be considering creating a new broadband Internet channel that will complement a customer’s existing cable TV service.
In an interview with London-based Financial Times, HBO’s chief exec Chris Albrecht said that the premium network is in talks with cable operators about an “HBO-like” service, where broadband customers could access a branded menu and download the network’s programming.
Still, Albrecht insists that the Internet channel would launch strictly in conjunction with cable operators, whose subscriber fees are the main cash crop for the ad-free HBO. “What we’re hoping to do is to use the brand and to use new products similar to HBO On Demand to help [cable operators] drive their broadband penetration,” Albrecht said to the FT.
With the major TV networks already joining forces with the likes of Google, MySpace and Apple’s iTunes, this initiative could open HBO’s doors to a younger, Web-savvy audience, who comprise a large portion of the online video-viewing demo.
While the network has already joined forces with sister company AOL for its comedy site, This Just In, and is conspiring to launch an ad-supported blog next year, HBO’s digital distribution is currently heavily reliant on its burgeoning On Demand service.
Since VOD accounts for 10% of HBO’s viewership (and is growing), and cable operators pay HBO millions each year in carriage fees, insiders say not to hold your breath for an announcement of the broadband channel’s official launch.
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