HBO's chief technology officer Otto Berkes is resigning, reportedly because the company is outsourcing its streaming service and slated to be launched in August.
Earlier reports said Berkes couldn't pull off HBO's plans to launch a stand-alone streaming service. After Fortune posted a speculation about the CTO's status in the company, Berkes submitted his resignation.
The Variety obtained a copy of the memo, which the previous CTO used to announce his resignation. Berkes said that HBO's decision to hire a third party for the over-the-top (OTT) streaming service doesn't align with his plans and won't utilize his capabilities.
“Therefore, I feel that this is the right time for me to move on from HBO so that I am able to fully pursue my passion building world-class technology teams, products and businesses,” said Berkes in the memo.
HBO tapped into Major League Baseball Advanced Media (MLBAM) to develop their streaming service for non-cable subscribers. The company plans to launch the OTT in April 2015, in line with Game of Thrones's season three premiere.
MLBAM is the company behind WWE Network's infrastracture and the operator of MLB.tv's streaming service. HBO will be their largest client to date.
By hiring an external team to build the OTT, HBO shut down the in-house streaming project Maui, helmed by Berkes. A memo released by company executives said that stopping the project isn't due to the low confidence in the team, but it's a belief that an existing streaming platform can deliver the job faster at lower risk.
HBO first announced the plans for the streaming service in October. CEO Richard Pepler said the initiative will remove the barriers disrupting consumers' chances to watch HBO.
“The international revenue possibilities could be just as large if not larger (with OTT). We have a huge opportunity in front of us. We will use all means at our disposal to go after it,” said Pepler.
According to an HBO official, the move from the in-house project Maui to the employment of MLBAM will not hinder the company's plan to launch OTT next year.
Berkes, known as one of the creators of Xbox, worked for Microsoft before signing with HBO in 2011.
