HBO Now Boasts 2M Subscribers
HBO Now has grown substantially in recent years and now has broken into the 2 million subscriber arena— Jeff Bewkes, Time Warner’s CEO, confirmed during an earnings call.
“We’re also really pleased with the growth of HBO’s domestic OTT product, and we expanded HBO’s international OTT footprint with launches in Spain, Brazil, and Argentina in 2016,” said Bewkes in a statement.
2016 was a busy year for HBO. The cable behemoth launched on Microsoft’s Xbox platform, Sony’s Playstation platform, Amazon Prime Channels, and new Samsung smart televisions. It also made substantial inroads into international markets.
HBO Now’s growth comes in just as Time Warner saw growth in all of its divisions. The company most recently reported revenue growth of 11% to $7.9 billion. Operating income also experienced growth of 22% to $1.7 billion, thanks primarily to the strong growth of Turner, HBO, and Warner Bros.
HBO reported an increase in overall revenues of 6% to $1.5 billion. Specifically, subscription revenues grew primarily both due to rate increases and higher home entertainment revenues.
Turner rocketed to 7% overall growth at $2.8 billion. The increase was due to a 14% growth in subscription revenues and a 9% increase in content revenues. At the same time, advertising revenues fell over 2%.
Turner’s growth in subscription revenues came from an increase in domestic rates despite a decrease in domestic subscribers.
Meanwhile, at Warner Brothers, revenues exploded by a whopping 17% to $3.9 billion on the backs of movies, including “The Accountant” and “Fantastic Beasts and Where to Find Them.” Also, the company reported increased TV revenues due to higher production. Operating income from this segment also exploded, an impressive 57% jump to $574 million.