HBO, Vol. 2
The HBO dream was started by airing their first program which was to be “Sometimes a Great Notion”. This featured the likes of Paul Newman and Henry Fonda and was extremely popular with viewers. Next, a meeting between the New York Rangers and the Vancouver Canucks at the NHL hockey game was aired and again, the broadcast was a huge success and immediately increased their following to something of masses.
Sterling Manhattan Cable at the time was a possible threat. This was soon dealt with, as they only had a 20,000 customer base around the Manhattan area. Time Life, Inc. played slightly dirty by gaining control of 80 percent of the business and eventually shut the whole operation down in Manhattan. Still seeing some potential, Time Life, changed the name to Manhattan Cable Television and kept the dream alive by taking over HBO back in 1973.
It was not long before changes started to take place. The likes of Dolan were certainly not going to last long if they were not doing their job properly, and that was exactly the case. Eventually, Dolan’s time was up as President and Chief Executive Officer and he was replaced by Gerald Levin.
With the new structure in place and Time Life, Inc. now in full control after the acquisition of the pay per view service, things were starting to move quickly. It was not long before HBO was snowballing and becoming extremely popular. There was one problem that HBO simply could not get round in the early years, and that was retaining consumers.
What HBO were finding was that their consumers would trial the service and actually really like it. The problem is, after a few days or maybe a few weeks, people were finding they had watched everything and that the channel was boring and a waste of money. The service eventually came to Lawrence, Massachusetts, but it was quickly realized that something needed to change to allow HBO to grow as it had done in the past.
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