Shares of Netflix are getting crushed in morning on Wednesday after HBO said it will launch a new standalone streaming service in 2015.
HBO shares were down more than 4% following the news.
Time Warner shares were reacting positively to the news, gaining more than 3%.
Speaking at an investor meeting on Wednesday, HBO CEO Richard Plepler announced that the company will offer the service in 2015, saying:
“It is time to remove all barriers to those who want HBO. So, in 2015, we will launch a stand-alone, over-the-top, HBO service in the United States. We will work with our current partners. And, we will explore models with new partners. All in, there are 80 million homes that do not have HBO and we will use all means at our disposal to go after them.”
Here’s the intraday chart showing the rise in Time Warner shares (in red), and the drop in Netflix shares (in blue).