Comcast to Offer HBO Cable Package with Internet

Comcast subscribers will soon be able to buy HBO cable package with Internet access.

HBO, an American premium cable and satellite television network, announced Friday on its website that it will start offering a cable package which includes 10 channels plus Internet access for as low as $50 per month.

The Time Warner-owned company decided to launch the new offering to attract more subscribers. The new package targets those who couldn’t afford HBO. Generally, a monthly HBO subscription is bundled with a pricier package with hundreds of channels. The “Internet Plus” service is almost 50 percent cheaper than the HBO Go package.

The “Internet Plus” cable package will be available through January 31, 2014 for $50 per month. Subscribers will get at least 10 non-sports basic channels including local and government channels. It will also be bundled with an Internet service of up to 25Mbps. The company is also selling it for as low as $40 on some states, however, the promotional price may increase up to $69.95 after a year.

"For HBO this is a test run. They are testing the waters," Morningstar analyst Michael Corty told Reuters.

HBO launched HBO Go in February 2010 to allow subscribers have unlimited access to their favorite movies and shows directly from their Apple and Android devices. It is also available on Samsung’s Smart TV and Amazon Kindle Fire. The service currently has about 6.5 million registered users—a small fraction compared to over 100 million of HBO’s main service worldwide. One must have a main subscription first before getting HBO Go.

The tie-up between Comcast and HBO can be a win-win for both. Comcast gets to compete with Netflix while HBO can reach out to over 20 million Comcast subscribers.