The TV streaming services market may be on the verge of the biggest change yet given reports HBO and Apple may be talking about an exclusive partnership that would leave Netflix, Amazon and every other market player scrambling to make similar moves to grow subscription base and push TV boxes and sticks into consumer hands.
The news comes as HBO puts the finishing touches on its impending HBO Now standalone streaming service, built and designed by Major League Baseball Advanced Media, which is scheduled to debut by April 12.
Currently HBO subscribers typically pay for the channel's programming and service through a cable, telecomm or satellite provider, paying either a set standalone monthly fee or as part of a content bundle package.
With HBO Now, however, consumers will be able to subscribe directly from HBO for a $15 monthly fee. Reports say Time Warner, which owns HBO, is aiming to build a network of distributors to push the HBO Now service to the 10 million broadband households that are not subscribed to a cable TV bundle service, and the 70 million cable TV subscribers who aren't HBO subscribers.
Pulling Apple TV on as a partner would be a huge win-win given Apple's computing ecosystem and the access to Apple smartphone consumers.
For Apple, landing HBO Now for its fledgling Apple TV would be a major coup and compliment HBO Go, a mobile streaming service, already available via Apple TV since 2013.
HBO's subscriber price for HBO Now, however, may prove a sticky point as entrenched competitor Netflix has kept its prices at nearly half that cost. There's also the potential of exhausting consumers with fees given they're already laying out money for the Web TV boxes and sticks. While these costs are typically much less than a cable subscription the increasing number of standalone services could prove to be confusing and ultimately more expensive at some point.
It's clear, however, that HBO believes the HBO Now cost is appropriate and isn't about the change the reported pricing of $15 a month.
"It's a premium product, and it will be priced accordingly," HBO CEO Richard Plepler said during an earnings call last month.
Obviously some Time Warner shareholders like the idea of HBO and Apple partnering as shares rallied end of day Wednesday on the reports though ultimately ended flat.
At this point HBO is not providing details regarding the Apple partnership report, and Apple has declined to comment.
"We know there's great anticipation around our standalone streaming service," an HBO spokesman said in a statement. "And when we have details to share, we will do so."
Another compelling aspect for Apple striving to be the sole HBO Now partner is the fact that HBO produces "Games of Thrones," one of the most popular streaming content programs to date. The arrival of HBO Now is expected to debut with the fifth season's premiere.
Yet streaming content competitors' programs have been pulling in strong viewer support as well. Netflix's "House of Cards" series is extremely popular and Amazon's original content program, "Transparent," has won an Emmy award.
