Over-the-top streaming packages remain all the rage as the TV model evolves, but at least one service has fallen well short of expectations in terms of subscribers.
Bloomberg reports that Time Warner Inc.’s HBO Now streaming service has reached 800,000 subscribers, nowhere near the 1.4 million predicted by at least one analyst. “HBO, which hadn’t previously disclosed the number of Now subscribers, has been expanding the $15-a-month Web service to compete against Netflix, Hulu and Amazon,” Bloomberg notes. “Barton Crockett, an analyst at FBR Capital Markets & Co, had estimated that HBO Now had gained 1.4 million subscribers.”
Richard Plepler, HBO’s CEO, gave a status update on HBO Now on a conference call this week, noting that the service has yet to come online on Sony PlayStation and Microsoft XBox, and has yet to introduce new content from Jon Stewart and others. Plepler indicated that the service will be marketed more aggressively this year.