Home Box Office, Inc.
| Author | Rebecca Stanfel, Rayna Bailey |
| Pages | 737-740 |
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1100 Avenue of the Americas
New York, New York 10036
USA
Telephone: (212) 512-1000
Fax: (212) 512-1000
Web site: www.hbo.com
Founded in 1972, Home Box Office (HBO) was the oldest and largest premium pay television channel in the United States. Unlike network television and most other cable channels, which raised revenue by selling advertising spots during programming, HBO relied exclusively on subscribers' monthly fees to generate income. As consumers' entertainment choices multiplied dramatically over the years, HBO strove to construct a distinctive niche for itself and to stand out amid competitors, which included other television channels, movies, home video rentals, and the Internet.
In 1996 HBO launched an innovative $60 million television advertising campaign in an effort to draw attention to itself and to strengthen its brand recognition. The spots, conceived by ad agency BBDO New York, sought to reflect the spirit and the programming of HBO. Instead of previewing upcoming events or providing a traditional "tune-in" message, the "It's Not T.V. It's HBO" campaign attempted to present the viewer with a sample of HBO's programming. The five spots making up the campaign deliberately strove to be humorous, creative, and original.
According to the company, based on surveys prior to and following the launch of the campaign, "It's Not T.V. It's HBO" achieved its goal of increasing the network's brand image and awareness among consumers. Further, the campaign earned praise from the media and advertising industries. "Chimps," the first commercial of the campaign, was awarded the first ever commercial Emmy. In 1997 the "Chimps" spot received a Gold Clio Award in the Television/Cinema category. As the campaign continued, its focus shifted, and the slogan evolved into the network's mantra, setting HBO apart not only from other pay television channels but also from all TV networks. The Cable & Telecommunications Association for Marketing (CTAM) named the campaign its Hall of Fame winner in 2003.
In its early days HBO primarily showed Hollywood movies and high-profile sporting events such as boxing. In the mid-1980s, however, HBO began to emphasize original productions, which included critically acclaimed made-for-HBO movies such as And the Band Played On and From the Earth to the Moon, comedy shows such as The Larry Sanders Show, and dramatic series such as Oz. The shift toward original programming was fueled in part by the arrival of the VCR, which enabled viewers to rent at their convenience the same Hollywood movies broadcast by HBO. By the mid-1990s the network also offered original documentary films, animation specials, children's and family programming, extensive sporting events and shows, and coverage of contemporary music
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concerts. At the time of the "It's Not T.V. It's HBO" campaign, 30 percent of HBO's programming was original. By 1997 HBO reached roughly 23 million subscribers, approximately one-fourth of the viewing public. That same year it also won 19 Emmy Awards for its original films and shows, the most ever garnered by a cable television channel.
HBO's programming was recognized for being innovative and daring. The New York Times lauded the channel's "willingness to take a chance on unconventional programming and to allow writers and directors to operate with minimal interference." HBO produced movies dealing with such issues as abortion, AIDS, and racism. As a pay television channel independent of advertisers' pressures and demands, HBO had the flexibility for controversial and bold programming. "We're not selling ads," Jeffrey Bewkes, the company's CEO, told BusinessWeek. "We're not selling our audience to advertisers. We're selling our programming service to you." HBO's mandate, and the key to its survival and profitability, was to continue to expand its subscriber base.
Like the cable industry as a whole, HBO was subject to "churning," the phenomenon of tremendous fluctuations among subscribers. Each month a huge number of viewers disconnected their HBO service for a variety of reasons. Some signed up for a specific event, such as a high-profile tennis tournament, and then disconnected the next month. Others subscribed to HBO only during the winter months, when they knew they would spend more time indoors, and canceled the service in the spring and summer. Some lost their jobs or suffered other financial hardships, and...
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