HBO Now has 800000 paying subscribers since April launch

Stifel analyst Benjamin Mogil said the 3.2 per cent gain in HBO subscriber revenue was lower than the 4.7 per cent rise that Wall Street expected.

CEO Richard Plepler finally confirmed the subscriber base for his company’s 9-month-old direct-to-consumer platform, HBO Now, pegging the number at 800,000.

Still, Plepler may have a point, since the service’s roll out took time.

Responding to one critical investment analyst’s question, “I wouldn’t say only 800,000 subs”, Plepler said during the conference call.

He certainly has a point.

Now has gained about 800,000 paying subscribers since it launched on Apple TV in April, contributing significantly to the 2.7 million net new HBO customers in the latest quarter. This is certainly the case for me – I’m not subscribed to HBO Now at the moment but I certainly will sign up once Game of Thrones makes its return. Today, HBO Now is only available as an add-on to Optimum and Verizon internet customers.

On top of that, he said HBO still hasn’t launched a handful of new shows that should draw in more cord-cutters. The service represents the first time HBO is being offered to users without a cable or satellite subscription.

Plepler also added that the service had not yet launched some of its more anticipated content that could help drive subscriptions.

In total, HBO will add 50% more hours of original programming in 2016, according to the company. An additional holdup may be that potential subscribers are waiting to pull the trigger until the next season premiere of Game of Thrones, which is slated for April. And the $14.99 per month fee is substantially more than other competitors like Netflix, Hulu, or Amazon Prime Video.

That’s below some estimates of around 1 million paying customers. Of course, the company may be trying to temper expectations.