Is HBO's Stand-Alone Streaming Service A Threat To Netflix?

HBO and Netflix might not be as fierce of competitors as we thought.

Is HBO's Stand-Alone Streaming Service A Threat To Netflix?
Getty Images / Frederick M. Brown

HBO is joining the streaming world — and for real this time. 

The cable network has announced it will launch a stand-alone streaming service sometime next year.

And this will be different than HBO Go, the steaming app HBO launched in 2010. HBO Go is only available to subscribers of cable services, but this new service will be available to everyone. 

HBO Chairman and CEO Richard Plepler said in a press release: "That is a large and growing opportunity that should no longer be left untapped. It is time to remove all barriers to those who want HBO."

Many point to Netflix's overwhelming success at online streaming being behind HBO's decsion. Re/Code reports Netflix has more than 50 million subscribers and could even generate more revenue than HBO this year. 

The Huffington Post points out HBO chose to make its announcement just as Netflix was set to report its quarterly earnings, and as a result, Netflix's stock experienced a sudden drop. 

However, Netflix will likely rebound quickly as it just announced a major acquisition. 

Yep, "Friends" is coming to Netflix. But this deal indicates there might not be as much competition between HBO and Netflix as most media have suggested.

Time Warner, HBO's parent company, sold the rights to "Friends" to Netflix. Interesting.

HBO says it will begin offering its stand-alone service in the U.S. and then later expand overseas. 

And hopefully this new service will have its bugs worked out. HBO Go crashed multiple times because too many people were trying to watch "Game of Thrones" at the same time. 

This video includes an image from Getty Images.