HBO said Wednesday that they will launch a stand-along streaming service in 2015.
The streaming service will not require cable subscription, which analysts deem to be a move that will change the landscape of cable television industry. It will resemble the trend popularized by websites such as Netflix and Hulu.
Richard Pepler, HBO chief executive, announced the news in an investor meeting held by its parent company Time Warner. Pepler didn't reveal the detailed plans and how much the service will cost. He did say that the streaming service will be available to U.S. consumers by next year and to two other countries before expanding globally.
The CEO described the planned service a complementary to cable, and not something aimed at disintegrating the industry. HBO targets the 80 million American households who have fast internet connection but doesn't subscribe to cable or has no satellite TV.
A research firm estimates that 40% of Americans stream their TV shows online instead of watching it on TV. Younger viewers, especially Millennials, prefer streaming sites such as Netflix, Youtube, and Hulu over subscribing to cable.
"That is a large and growing opportunity that should no longer be left untapped. It is time to remove all barriers to those who want HBO," said Pepler.
In America, HBO has 30 million subscribers while Netflix has 37 million. The research firm Forrester said that the HBO's move can be a game changer for cable and online streaming industry.
James McQuivey, a Forrester analyst, said, "HBO and ESPN are the two main reasons why people have cable and satellite TV. The whole industry has eyed them for years, nervous that one day they would decide to do exactly what they said they'll do in 2015."
HBO has been offering popular award-winning television shows such as The Sopranos, Game of Thrones, Sex and the City, True Blood, and True Detective since 1972.
