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Originally Posted by Jameseh
If HBO has any sense they'll do their own channel when the SA deal runs out, they already do Sweden/Norway I think. Can't imagine Sky are paying them more than they could make from subscriptions from any TV providers customers.
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SKY are paying HBO £30 million per year.
HBO will also be making plenty of money from the UK market by way of Blink box on demand plus DVD and Blu-Ray sales.
It all comes down to what makes sense in terms of cost effectiveness. How much would it cost HBO to set up their own channel in the UK, and how much could they make from individual carriage deals from SKY, Virgin and BT?
To better their current deal with SKY, cover their set-up costs and cover the potential downturn in on demand and DVD sales, HBO would need to be making about £40 million per year in carriage deals to make it worth their while.
Maybe the viewing figures for SKY Atlantic will put HBO off. Only 8% of SKY’s overall customer base regularly watches SKY Atlantic. SKY, Virgin and BT have roughly 15,200,000 subscribers in total. Based on SKY Atlantic viewing figures only about 1,216,000 people would watch SKY Atlantic / HBO UK if it launched across all platforms.
HBO with their current SKY deal are probably laughing all the way to the bank.