HBO says its partnership with Apple was a no-brainer

HBO CEO Richard Plepler said Tuesday he believes the company’s new product will will be a big hit with millennials. “We think HBO Now is something of a millennial missile,” Plepler saod on CNBC’s “Squawk Alley.” “We think this is a terrific opportunity to earn 10 million broadband-only homes in the U.S., and that’s largely a millennial audience.” HBO Now is scheduled to be released in early April and will serve as an over-the-top alternative for consumers without a cable subscription. The service will come with a price tag of $14.99 a month, considerably higher than Netflix’s and Hulu’s montly prices ($8.99 and $7.99, respectively). Plepler said consumers, especially millennials, will be willing to pay the higher price. “We think we have a premium product. We have extraordinary content … and it’s the price of a movie ticket and a bucket of popcorn. If you look at the value of that, we think it makes perfect sense and we think the consumer is going to agree with us,” he said.