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HASTINGS CLAIMS NETFLIX PASSES HBO IN SUBSCRIBER REVENUE

August 7, 2014 by · Leave a Comment 

An HBO subscription costs about twice what a subscription to Netflix does. Moreover HBO claims that it has 127 million subscribers worldwide to Netflix’s 48 million. Those figures indicate why Netflix CEO Reed Hastings’ remark on Wednesday that Netflix during the last quarter passed HBO in subscriber revenue did appear to raise eyebrows. Hastings said that a "minor milestone" occurred, when, during the last quarter, according to Hastings: "we passed HBO in subscriber revenue ($1.146 billion vs $1.141 billion). They still kick our ass in profits and Emmy’s [sic], but we are making progress." Hastings did not explain how he arrived at the HBO figures, which are at odds with Time Warner’s, released on Wednesday, indicating that HBO grossed $1.42 billion in the last quarter. However, HBO’s total subscriber revenue is difficult to assess given the fact that Time Warner has deals with several cable companies that that include HBO as part of an overall package of cable networks, thereby allowing the cable companies to sell HBO to customers at their own prices.