Hbo Research

Topics: HBO, Time Warner, HBO Latin America Group Pages: 5 (1798 words) Published: March 5, 2013
Home Box Office is one known for being spontaneous and taking chances. The channel, HBO tries new ideas and chooses shows that are different than most, which overall grabs the audience’s attention. Some of HBO’s original works include Sex and the City, Boardwalk Empire, True Blood, Entourage, and many others. Most of HBO’s shows and movies that are aired can be graphic, include nudity, violence, and poor language. These types of shows are not allowed to be aired on regular cable programs; therefore, more people become interested due to its originality. As a result to HBO’s unique characteristics, the channel won an Emmy for creativity in 2011. HBO won this award because it includes outstanding visual and sound effects in the shows. It took a long time for HBO to become the way it is today and ever since the channel began it has expanded even more. Due to Home Box Office’s history, number of subscribers, financial plan, and competition it has become one of the most successful channels and will keep expanding for its future.

The origin of HBO started in 1965 and was created by Charles Dolan. In November 8, 1972 the "Green Channel" developed, which then became the HBO channel. HBO stands for Home Box Office. It was created to allow people to watch shows and movies that are different than most programs. Some people might object to the programs aired on HBO, but it is a paid channel so viewers who disapprove can cancel their subscription. However, since HBO takes risks and offers content that provides creativity, profanity, and violence it has a higher success rate than most channels.

HBO has around 30 million subscribers, in which they purchase a cable and/or satellite company and have additional payments for receiving the HBO channel. These payments vary depending on the television provider and what packages they carry. For instance, if a household has Time Warner Cable as their provider and they want to purchase the HBO channel as well, then it will be around fifteen dollars extra per month. In the early 1970s, local cable companies distributed HBO's service and would charge users around six dollars per month, and $3.50 of that money would go to HBO. It was during this time that HBO was afraid that it would lose audience and revenue due to cable being sponsored by major television networks. However, during the mid 1970s, the cable industry increased its infrastructure, by leaning toward popular cities. Within those cities, Pay-Tv customers bought extra cable services, including HBO. This led to HBO to expand and went from 50,000 viewers in 1974 to around 1.5 million viewers in 1978. This expansion resulted in HBO being able to choose what movies and sports to make available; therefore, HBO started becoming one of the main channels that helped the cable industry to grow.

In 1972, Charles Dolan and Gerald Levin of Sterling Manhattan Cable commenced HBO, which was the first pay-TV program for the nation. This launch resulted in the construction of the national satellite distribution system, in which utilized a recently approved domestic satellite transmission. This helped the reshaping of businesses and forced program networks to grow. Viewers can access HBO through their providers, but it will have additional costs. HBO exists within forty-one television cable providers. These television providers are located across the globe and have a variety of customers. It took awhile for HBO to grow nationally, but as it progressed more viewers were intrigued and wanted to subscribe. So HBO’s success and attention helped the providers to increase its revenue, which ultimately resulted in more providers paying HBO to be included within their cable system.

d) As HBO expanded, many cable carriers wanted HBO to be a part of their cable plans. In 1978, Time spent $145 million to purchase American Television & Communications Corporation, and then decided to also buy the...
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