Get HBO Without Cable in 2015

Viewers will no longer have to be tied to cable or satellite packages beginning in 2015 when they want to watch HBO, said the network's chairman and CEO, Richard Plepler.

Pointing toward the proliferation of broadband-only homes — currently ten million and growing — Plepler announced HBO's plans to cut the cord and offer streaming, over-the-top service in the United States at a Time Warner Inc. investor meeting today. It launched a stand-alone online channel in Scandinavia in 2012.

“That is a large and growing opportunity that should no longer be left untapped," he observed. "It is time to remove all barriers to those who want HBO."

Posting $4.9 billion in revenues last year, HBO is one of Time Warner Inc.'s highest performing business units. But even after adding 2 million subscribers this year, the company does not see much room to grow within the confines of traditional cable. Gains made by Netflix and other digital entertainment entities are prompting the cable ecosystem to reassess its service offerings to some degree.

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Also Read: CBS Follows HBO, Unveils CBS All Access

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"We will work with our current partners and we will explore models with new partners," Plepler continued.  "All in, there are 80 million homes that do not have HBO and we will use all means at our disposal to go after them.”

He did not elaborate further on potential plan structures or price points. 

Forrester analyst James McQuivey projects the web-based a la carte version HBO Go may cost about $15 per month, quite a few dollars more than the lowest Netflix tier, which currently starts at $7.99.

Television Academy Interactive Media governor Seth Shapiro, who also serves as an adjunct professor at the USC School of Cinematic Arts and chairman of the Village Green Network, said he sees this long-anticipated announcement as a "watershed" for the television business.  

"The ability of US consumers to get HBO without buying a cable package represents the beginning of a major move towards new online services provided by content companies directly to consumers," he observed.

Lots of consumers are most certainly overjoyed at the prospect of being able to get HBO's premium fare without the hundreds of other channels that come with a conventional cable or satellite plan.

But be careful what you wish for, cord-cutters, some say. The sum of parceled out subscriptions may ultimately offer no savings over the current cable bundle structure in the long run and, ultimately, may cost more.   

Not that anyone should worry about cable-as-we-know-it going anywhere soon, as the Washington Post reports. Television's most popular fare is still live sports and news — and Time Warner unit Turner Broadcasting and ESPN just sealed a nine-year $2.6 billion agreement last week for NBA games.

Two-time Emmy Award winner Shapiro also said that Television Academy members and others in television and digital arena should expect to see lots more companies launch online distribution and direct-to-consumer options, including new services from Dish, Sony and Starz. 

"Also watch for the FCC to expand the definition of MVPDs (multiple video programming distributors) to include online TV distributors alongside traditional cable and satellite players," he advised.