The Gemini Group

ELIZABETH GARDNER, MYRA WEAVER, LI HAN, BAILEY FARRELL

Company

HBO is a television programming subsidiary of Time

Warner Inc.
In 2014, HBO brought in $5.4 billion in revenue
Most successful pay TV service - provides services to
approx. 127 million subscribers globally

38%
43%
19%

Company

In 2010, HBO Go launched

In April 2015, HBO Now launched

Charter Communications acquisition

Mission: Harness technology and develop new business

models to increase the value of content to consumers and
distributors and drive growth for business.

Consumer Analysis

Current Consumers:

Ages 18 to 45
Current Online Streaming Service Subscribers
Cord-cutters
Cord-nevers

Consumers are movie aficionados & binge

watchers

HBO consumers like to watch shows at their own

pace

They want access to the shows when its

convenient

SVOD CONSUMPTION
BY GENERATION

HBO SURVEY GRAPHIC

Market Analysis

Urban Uptown
Midtown Mix
The Affluentials

City Centers

Index, BDI, CDI

Men
Index

College educated
HHI : $
6
$60,000-$150,000 0,000 - $15000

BDI

CDI

HBO, as a premium
cable service, has a
BDI of 111.

Online videostreaming has a

high CDI of 132.

Competitive

url

39.11 million
US consumers
$ 6.78 billion in
revenue
$ 121 million
on advertising

40.9 million
consumers
$ 242.3 billion in
revenue
$ 1.23 billion on
advertising

9 million
consumers
$ 1 billion
$ 55 million on
advertising

Product/Brand Analysis
HBO Now ranks 4th among video streaming
services. (Statista 2015)
Within 3 months accounted for 7% of SVOD
services

HBO Now has 800,000 subscribers

SWOT Analysis
Strengths
-Established brand
-Exclusive content (live new
episodes, series only released
through HBO, etc.)
-Cheaper than HBO channel through
traditional cable provider
-HBO Now is expanding availability
on more devices

Opportunities
-Netflix is raising prices -More
people are cutting the cord as
online streaming takes over
cable
-May be purchased by Charter
Communications, resulting in
more money

Weaknesses
-Initial subscription is only
available through mobile devices
-High cost (most expensive SVOD
of all platforms)
-Lack of awareness and
understanding of HBO Nows
distinct qualities and benefits
-Self-cannibalization

Threats
-Strong competitors control a
hefty percentage of market
share
-Binge-and-ditch Competition has broader
libraries and more content

Target Audience
Primary

Unmarried, college-educated, ages 24-44, HHI

$55,000-$120,000
Employed full-time, no children, cordcutters/cord-nevers
Supplement cable with Netflix/Hulu subscriptions

Secondary

Current HBO Now subscribers

Emotionally invested in the characters and shows

Target Market Profiles

Jeremy Park, 26

Shane Lawson, 35

Ethan James, 41

Objectives
Marketing: Increase HBO Now subscriptions by 15% among
non-HBO consumers by June 30, 2017.

Media: Reach 65% of potential consumers with HBO Nows

message at least four times by June 30, 2017.

Communication: Increase brand awareness by 50% among

competitor SVOD (Netflix, Hulu and Amazon Prime)
consumers by June 30, 2017.

B
U
D
G
E
T

Budget and Timeline

Blood is thicker than

water

Creative Executions
T
V
S
T
O
R
Y
B
O
A
R
D

Creative Executions
Social Media
Banner Ad

Blood is thicker than

water

Strategies
Airport Lounges

HBO Now is infiltrating airports. Visit our

lounges today! hbonow.com/lounges
When there's WiFi, you can
stream your
favorite shows.
When you can
stream your
favorite shows,
you're never away
from home.

Creative Executions
SOCIAL
MEDIA

Strategies
Movie Theaters

Virtual
Reality

Creative Executions
got GoT?

Creative Executions
Loyalty Program
HBOwards include:
* Pilot Junkie: Watch the first episodes of
three different series
* Completionist: Finish four HBO series
* Red Wedding Crasher: Complete "The
Rains of Castamere" (Episode 9 of
Season 3 of Game of Thrones)
*Hooked: Watch a new episode of a
current show within 16 hours of airtime
*Binger: Watch 8 episodes in a row of
any series
*Giggle Groupie: Watch 5 hours of standup comedy
*Old Soul: Watch three completed HBO
series
*High-Flyer: Check in at any HBO lounge
in key airports

Outcomes
Total Budget: $45 Million spent
TV: 13 billion views
Guerilla: A reach of 71 million people
Streaming radio: 5.4 million listeners
Push notifications: A reach of 300,000 consumers
Social media impression: 86 million impressions
Push notification receivers = $27 million during the campaign
and $54 million if they stay for a year.
Airport Lounge: Half occupancy = $1.2 million per lounge

Measurements and
Evaluations
Marketing Objective: Increase HBO Now
subscriptions by 15% among non-HBO
consumers by June 30, 2017.

Concurrent testing: web analytics in April for

midpoint sales and at the end of June for total
campaign sales increase.

Measurements and
Evaluations
Media Objective: Reach 65% of potential
consumers four times.

Copy testing: via surveys and questionnaires,

done in June to ensure media reach is increasing
brand awareness.

Measurements and
Evaluations
Communication Objective: Increase brand
awareness by 50% among SVOD users.
Concept and Post testing: via focus groups and
online surveys.
Evaluate retweets, shares and likes
January- Beginning of campaign
April- Mid-point
June- End of campaign