HBO taps subscription-reliant ad-free model in India

The move comes at a time when other international networks, including BBC and Turner, have been closing pay TV channels in the South Asian market. Last month, BBC discontinued BBC Entertainment and CBeebies, citing delays in digitisation and cable platform fees. Earlier in the year, Turner closed one of its Hindi general entertainment channels on account of poor performance.

HBO Asia says it’s bucking the trend because it believes being advertising-free will target a new market based purely on subscription revenues without the reliance on advertising. “It is a model that benefits operators as well and the timing is right to launch premium television in India,” said a spokesperson for the network.

A recent repot from the Federation of Indian Chambers of Commerce and Industry and KPMG expects subscriptions to grow around 4 per cent by 2016.

The spokesperson added that the new channels will also create original content for the Indian television market and international distribution “to redefine the pay TV movie space.”

Until now, HBO Asia was ad-free in all markets except India. In an earlier interview with Campaign Asia-Pacific, HBO Asia’s CEO, Jonathan Spink indicated that the media company would move toward pay services sooner rather than later.

“The ad market in India has exploded in the past 10 years, there’s no doubt about it,” he said. “ But as people become wealthier and spend more money on home entertainment, I think it natural to assume you will get into some pay services sooner rather than later.”

The two new channels have been launched in partnership with Eros International Media, a production company. The channels will be available on digital platforms at about R100 a month.

Defined will offer HBO Originals programming, while Hits will be more genre-driven, according to HBO. Both movie channels will be subtitled in English, with selected programmes also available in either English or Hindi.

[Update, 11/12: The last paragraph has been edited to correct information about the content and languages on each channel.]