HBO is making a killingThe Home Box Office (or HBO for short) has been a huge player in TV and film for decades. Long before people were streaming content online, HBO was putting out what was considered to be ‘premium’ cable programming. Now with new entities such as YouTube, Netflix, and Hulu swallowing up eyeballs, HBO has had its challenges in the past few years.

Currently Netflix has over 33 million subscribers. Originally a mail-in rental service, Netflix grew into its name by making hundreds of movies available on demand through their streaming service. Other companies such as Hulu and Amazon Prime have tried to duplicate this kind of success, but have fallen short so far.

So what has HBO done to battle these ‘new media’ streaming services? They offered their own, of course. HBO Go, which carries the tagline ‘It’s HBO, Anywhere’, literally is available on all of the same devices as Netflix.Since HBO has such a long history of quality programming, the On Demand service has surely kept the loyal HBO watchers happy, while also appealing to a wider audience.

Available to subscribers, HBO Go gives an On Demand approach to its huge back catalog of hit shows. That’s another important thing to note about Netflix: they were until recently completely dependent on distributors (including HBO owner, Time Warner) for the rights to stream their content. This has translated to Netflix notoriously being filled with a catalog of older titles, many of which were not hits to begin with.

Where does this leave HBO financially? It’s estimated that HBO brings in over $1.4 billion in subscriber fees. That’s not really the whole picture, though. Since HBO is owned by Time Warner, and Time Warner owns Time Warner Cable, a sort of mutual abundance is created between the two arms of the media company. Time Warner Cable needs solid content to keep people subscribing to their service. This is hard to do when people see the small price tag for Netflix. With HBO offering premium content for a mere $15 dollars more, it reels people in and keeps them there. Ask a die-hard watcher of True Blood or Game of Thrones if they’ve ever considered ditching HBO and cable for Netflix, and they’ll probably laugh in your face.

Netflix has recently jumped into the water in developing original content. House of Cards and Lilyhammer are among some of their titles. HBO, on the other hand, has been making original content since the early 90s. Their catalog of hit shows is remarkable. It’s not a fair fight when comparing the quality of content between HBO and Netflix; you get what you pay for.

The economics seems to be working in HBO’s favor as well. While a whole season of True Blood might have cost HBO $50 million dollars to make, Netflix had to spend twice that for a season of House of Cards. Having Warner Bros. studios and their infrastructure at HBO’s disposal has surely made some impact on why this is the case. Experience certainly counts in the entertainment industry.

HBO seems to know what they’re doing in the era of next generation media. Recently they’ve experimented with HBO Go as a stand-alone service in a small market. This clearly shows they’re looking at the future and what they need to do to adapt.

With the shows that they have along with the new shows in development such as American Gods, based on the Neil Gaiman novel, and True Detective, the HBO network is here to stay. Despite campaign’s such as ‘Take my Money HBO’ where people tried to petition HBO into offering its content on demand without being bundled with cable, HBO has remained a juggernaut in entertainment. HBO has been giving people what they want in quality entertainment for decades. They know what they are doing.