The standalone HBO service will arrive on Apple devices in April

Author: Lisa Richwine

(Reuters) – HBO’s standalone streaming service will launch on Apple Inc (AAPL.O) devices next month ahead of the season premiere of the hit series “Game of Thrones,” the network said on Monday, in a move aimed at reaching millions of viewers who do not subscribe to pay TV packages.

The new HBO Now service will cost $14.99 per month. It will include the network’s past, present and future series, as well as its Hollywood movie lineup, HBO president and CEO Richard Plepler said at an Apple event in San Francisco.

For the first time, the premium network will be available to people with Internet access who avoid traditional TV packages including several dozen channels. Other media companies, including CBS Corp (CBS.N) and Dish Network Corp (DISH.O), are also taking steps to reach these audiences.

“This is a watershed moment for HBO,” Plepler said after an introduction by Apple CEO Tim Cook.

The move by Time Warner Inc’s HBO (TWX.N) could threaten the video businesses of cable and satellite operators, which are struggling to keep customers from ditching their TV packages. It also increases competition with streaming services such as Netflix Inc (NFLX.O). HBO’s library includes hits “The Sopranos” and “Sex and the City.”

From the beginning of April, HBO Now will be available via Apple TV box and on iPhones, iPads and iPod touch. The premiere of the fifth season of “Game of Thrones” will take place on April 12.

Apple will be the exclusive digital service provider for HBO Now for three months. The network is also trying to convince traditional TV distributors to offer the service in April.

Plepler said in an interview that HBO Now offers pay-TV distributors a chance to add broadband-only or smaller TV packages and increase retention. Distributors would also receive a portion of the monthly revenue.

“It’s an improvement and a turbocharge for their own business,” he said.

Verizon Communications Inc (VZ.N), AT&T Inc (TN) and Dish have not commented on the matter. Other distributors could not be immediately contacted.

HBO Now is a separate HBO Go streaming service for customers who subscribe to TV packages.

Apple also said it was cutting the price of Apple TV to $69 from $99. Time Warner shares rose 1.3 percent to $85.20 on the New York Stock Exchange. Netflix shares fell 1.9 percent to $445.63, while Apple shares rose 0.4 percent to $127.14. Both are listed on Nasdaq.

(Reporting by Lisa Richwine in Los Angeles and Malathi Nayak in New York; Editing by Bernard Orr and Lisa Shumaker)