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What’s the Subscription Revenue Outlook for TWX’s HBO?

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Time Warner’s outlook for subscription revenues for HBO

In the previous part of this series, we looked at the reasons behind Time Warner’s (TWX) focus on premium programming for HBO. This focus on premium programming has also resulted in Time Warner being optimistic about HBO’s subscription revenues. Time Warner expects these revenues to accelerate in 2Q17.

Time Warner expects HBO’s subscription revenues to be in the high-single digits for 2017. Time Warner also expects that the subscription revenues at HBO will benefit from the renewal of its affiliate agreements with its distributors. The focus on programming to improve HBO’s subscription revenues has also meant that Time Warner intends to produce a variety of programming that caters to all genres instead of solely focusing on viewers’ choices of particular genres.

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HBO Now and subscription revenues

The company’s direct-to-consumer service, HBO Now, is also becoming increasingly important for the company. Time Warner’s partnerships with third-party distributors like Amazon (AMZN) has resulted in a rising subscriber base for HBO Now.

Time Warner also plans to partner with other third-party distributors to distribute HBO Now to improve the reach of the direct-to-consumer service by making it easier for viewers to subscribe.

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