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Subscribers Ready to Cancel Cable for HBO's Standalone Streaming Product

Posted by: , 12:31 AEDT, Sun January 25, 2015

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Cable companies could lose millions of subscribers when HBO debuts its standalone streaming service
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Image/Photo Credit: HBO

Nearly 50% of those wanting to subscribe to HBO's standalone streaming product are willing to cancel their bundled cable subscription once the new service is available.

These results are part of a new survey conducted by Parks Associates interviewing 10,000 U.S. broadband households. Of these households, 17% said they were likely to subscribe to HBO's standalone over-the-top (OTT), which the survey hypothetically priced at $14.99 a month. 

Out of those wanting HBO's new streaming service (of which 91% are existing pay TV subscribers), half would be willing to cord-cut and cancel their cable bundles.

With HBO currently only available as part of a cable package, it is well known that many cable subscribers are only keeping their services in order to access HBO's award winning program line-up. This new survey would seem to confirm that HBO's decision to "go it alone" could end up costing cable providers dearly.

Over 50% of US households already subscribe to an OTT video service, and major players in the video industry will need to re-adjust, according to Parks Associates. 

"This shift to the use of OTT on the TV screen will impact the entire ecosystem, including pay-TV providers, broadcasters, cable networks, and advertisers. Everyone will need to adjust to a new way of doing business," said Brett Sappington, Parks' director of research.


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