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The Street

HBO's Online Deal With Apple Is Risky Bet for Time Warner

March 08, 2015

How many folks will sign on for HBO Now is unclear. Time Warner's HBO Go online service for subscribers of HBO on cable or satellite, benefits from hefty promotion from operators who share in the subscription revenues. Apple isn't likely to send out mailers or aggressivfely promote HBO Now as those partners have done in the past.

Digital research consulant Parks Associates figures as many as 17 percent of U.S. broadband customers will sign on for a standalone HBO service, or about 15 million homes, according to its survey of 10,000 respondents. Most of those already have cable subscriptions, said Parks, and as many as half those say they'd likely cancel their pay TV service when they sign on. Little wonder that cable and satellite operators are hardly pleased with HBO right now.

So why has Time Warner angered cable operators? Why bite the hand that feeds you?

From the article "HBO's Online Deal With Apple Is Risky Bet for Time Warner" by Ronald Grover.

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