HBO has at the moment over 23.6 million subscribers in the US, and that is perhaps the reason AT&T calls HBO a “wholesale” network. Despite the fact HBO Max got free as a portion of the “regular” HBO subscription, only 1 million subscribers have activated the app. The HBO subscription charges are somewhere around $5 to $20, based on the package of the channel provided in satellite or cable TV.
On the flip side, HBO business is perhaps the most successful entertainment business at present. It holds importance in the entertainment industry because of the valuable content it provides to its customers. HBO has won many awards over the span of time that prove that it serves its customers with unique and interesting content. The subscribers of HBO don’t feel bored because HBO launches a new show after concluding one. This strategy is working to hook the attention of the customers until the next show. Also, it has shown positive results in prolonging the attention of new customers.
After seeing a constant elevation in the progression graph, famous actors and producers are joining hands with HBO for their future work and never shied away from working with HBO before as well. If you want to subscribe to HBA (ad-free) you can do that by getting CenturyLink TV too. You can bundle it up with internet service too at a discounted price, before placing the order you should read CenturyLink internet reviews.
In this article, we will further discuss HBO’s business model and how it generates revenue without solely relying on running ads unlike the conventional method of earning. So, without further delay, let’s get to it:
HBO Business Model – Total movies on streaming services
Reports show that HBO sets aside a handsome budget for streaming services. For example, an episode of True Blood costs around $5 million. Here is another surprising news for you that HBO spent over $15 million for each episode of Game of Thrones. Do you think these are the real figures? The company hasn’t confirmed it yet but it was reported by CNBC.
How does HBO make money?
HBO Business Model offers three types of subscriptions to people that generate handsome revenue. This way customers have three options to pick from and these services are:
1. HBO Cable Channel
2. HBO app
3. HBO Streaming
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HBO offers advertisements of products and services that earn them huge profits. HBO promises to entertain its customers. That’s why it doesn’t display commercial ads during programs. But then again, money has got some power, if not entirely. Some distinguished brands including Apple pay HBO a handsome amount for running ads. It makes HBO run their commercial ads in the programs. Similar to all the channel models, it remains the most profitable way for HBO to make money.
Merchandising
HBO doesn’t earn much through merchandising. This technique is rather effective for channels that target kids. We all know that HBO provides thrilling content for adults. So, merchandising isn’t the right source of handsome revenue for HBO.
Other facts about HBO
HBO gets a huge share of profit from services that cable service providers sell. That’s why HBO has to focus on establishing close relations with them. It will increase the revenue of HBO multiple times. HBO is also trying to extend its services worldwide at cheap rates, but it will take years for this dream to come true. Cable services still hold a promising position in the United States. The first target of HBO is to surpass the cable services with its streaming services. Other goals are the things of the future, but you can hope for positive innovations from HBO.
Conclusive Thoughts
For people who are reading this, HBO always leaves us curious how it generates revenue since it doesn’t follow the conventional route, i.e. running paid commercial ads during the broadcasts. This is the primary reason people love HBO and now all the OTT (over-the-top-media) services. Nobody likes ads when the most awaited episode of their favorite show is being aired, and that is where HBO rescued the already agitated audience. HBO is known to be the market leader due to its intuitive marketing and business strategies, whether it was for running ads or launching HBO apps because of its progressive approach.
