HBO’s iPad Formula Keeps Subscribers Happy

HBO released its iPad and iPhone app, HBO Go, back in April of 2011. Since then, it’s proven to be a success for the company, increasing viewership and helping to retain HBO customers.

HBO Go is an additional service available to HBO subscribers that allows them to watch premium shows like “True Blood” and “Game of Thrones” plus an assortment of movies on their iDevices, in any location where Wi-Fi or 3G access is available.

The users who use HBO Go on mobile devices watch 30 to 50 percent more shows and movies than subscribers who do not take advantage of the additional iPad app. While the app has increased the amount of content watched, it has not increased the total viewership. According to Time Warner CEO Jeff Bewkes, subscriptions to HBO Go have been “stable” in the past year, meaning the service has 28 million paying customers.

That’s not a bad thing though, because while HBO hasn’t gained a significant number of subscribers, it hasn’t lost any either. In an era where competitive services like Netflix and Hulu are readily available and thriving, subscriber retention is important.

Currently, there are five million HBO Go users, which is just a fraction of HBO’s subscriber list. While the service isn’t attracting new subscribers, it still has its competitors concerned. At the USB Media Conference yesterday, Netflix CEO Reed Hastings said, “The competitor we fear the most is HBO Go. They aren’t competing directly with us now, but they can. HBO is becoming much more Netflix-like, and we are becoming much more HBO-like.”

[via All Things D]

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