New York, October 16, 2014 -- Moody's believes that Time Warner Inc.'s announcement that it plans to launch HBO as an over-the-top (OTT) service in 2015 will be a strong revenue and profit contributor which will improve financial flexibility and improve the company's credit. The company announced that HBO will be launching OTT which means that subscribers to this service or platform will be able to stream HBO's programming on any device, in the home through a high-speed-data connection, or on a mobile device that is data service enabled or connected via wifi. This will be the first time that an HBO consumer can purchase the programming without being a subscriber to a pay television service from a traditional pay TV provider or multi-video-programming-distributor (MVPD). We believe that this decision will lead to strong revenue growth for the company given HBO's unrivaled quality high demand content and its relatively low penetration of US homes -- presently at about 30 million subscribers or under 30% of US homes (not low compared to other premium networks, in fact it remains the highest among premiums).

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