Earlier today, Time Warner Cable released its Q4 earnings and year-end results highlighting HBO’s record year.
Last year, the cable network’s revenue rose 4% reaching $US4.9 billion, according to Reuters. Also, adjusted operating income grew 8% hitting $1.7 billion.
While this shows the cable network is financially healthy thanks to its slate of original shows and subscribers, both of these statistics should make Netflix nervous.
In 2013, Quartz writes that Netflix made $4.375 billion in revenue, which is a paltry sum compared with HBO.
Netflix CEO Reed Hastings has always made it clear that premium channels like HBO are his company’s primary target. A few weeks ago, Hastings mocked HBO over shared passwords and famously passed HBO’s subscriber base at the end of last year. Hastings can brag all he wants about his subscribers, but HBO making more money means this war just got more intense.