DirecTV Could Punish HBO if Streaming-Only Service Becomes Too Popular

/ 3 years ago


HBO is a lucrative pay-channel for US satellite and cable TV broadcasters, like satellite service DirecTV. But back in October, HBO announced that it is to offer HBO Go programming in a streaming-only bundle, on top of its TV subscription model. Now “people familiar with the matter” claim that should HBO’s streaming-only service become too popular, that DirecTV can take punitive measures against HBO.

Their contract supposedly states that if HBO “signs up more than 450,000 subscribers nationally for the ‘over-the-top’ online service, or 300,000 in any given local market,” DirecTV can pull its marketing for the service, or even start selling the streaming bundle through their own billing department.

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In an e-mail to Ars Technica, DirecTV said, “we don’t comment on programming contracts or speculative stories.”

Source: Ars Technica

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