HBO’s Plepler Sees ‘Gold in the Hills’ With OTT Play
*Premium net’s CEO argues traditional TV set will still be the chief
viewing option***
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**11/20/2014 01:32:00 PM Eastern***
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**By: Tim Baysinger **
**Broadcasting & Cable*
http://www.broadcastingcable.com/news/programming/hbo-s-plepler-sees-gold-hills-ott-play/135810
HBO CEO Richard Plepler reiterated his stance
<http://www.broadcastingcable.com/news/programming/plepler-hbo-ott-won-t-cannibalize-cable-subs/134868> that
the premium network’s plan to offer its broadband HBO Go service to
non-HBO subscribers
<http://www.broadcastingcable.com/news/programming/hbo-launch-ott-service-us-next-year/134851> will
not cannibalize its customer base.
“I don’t think it’s cannibalistic at all,” said Plepler during a session
held by the Paley Center for Media as part of its International Council
series. “We’re going to have a big business with [MSOs] and we’re going
to have a big business with new partners.”
In fact, Plepler argues that since most consumers around the country get
their Internet service from their cable companies, those operators would
only serve to benefit. “Who controls the broadband pipes in the U.S.?
Our distributors,” he said. “There is gold in the hills, lets go get it
together … its your money too.” He estimated there are roughly 10-15
million homes that are broadband only.
Plepler described the idea for making HBO Go available in a
broadband-only form came from wanting educate consumers who don’t
understand the full value of HBO. “How many undecided voters are out
there? How many people like the brand but don’t know the full value?”
asks Plepler. “We want to create as many options as we can … to go out
and get those homes.”
A few other highlights from the session:
— Plepler argued that despite the myriad of viewing platforms, the
traditional TV set is still the king. He labeled iPad and iPhone viewing
as more of a means to catch up on shows where viewers have fallen
behind. “Who wouldn’t prefer to watch [/Game of Thrones/] on a 50-inch
flatscreen?”
— An often overlooked part of HBO’s business, according to Plepler, is
its theatrical movies, which he said accounts for 78% of all viewing on
the pay cabler. He continued that 40% of subs only watch theatrical
releases. “While original programming obviously takes up an enormous
amount of the cultural halo for HBO, don’t forget the power of
theatrical movies.”
— Another reason for the OTT play is the ability to better market
themselves. “We’ve relied way too much on our partners to market us.
They have other responsibilities.” Plepler said HBO is planning a
massive marketing strategy for next year.
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