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Question
Analyze and explain at least five important reasons for why HBO decided to offer its new service HBO Now.
Note: Question 2 and Question 3 below are based on the idea of HBO Now cannibalizing its existing business with Comcast. Cannibalization is the phenomenon when a company’s new business does not generate new customers, but only acquires its existing customers from another source. In this case, cannibalization happens when a customer gives up an existing HBO subscription through Comcast in order to subscribe to HBO Now. Alternatively, a potential customer who would have anyway joined HBO through Comcast now decides to join HBO Now directly. In both cases, HBO Now will not generate additional customers or revenue for HBO.
