HBO Latin America’s Gustavo Grossman Discusses HD, VOD & More

NEW YORK: Gustavo Grossman, the VP and general manager at HBO Networks Latin America, talks to TV Latina about the benefits of offering premium content, among other topics.

WS: What benefits has HBO reaped from its premium content offerings to subscribers and potential clients? What advantages do you see in having been in the region for over 20 years?
GROSSMAN: The advantage of being present for over 20 years is that we’ve consolidated our leadership and HBO’s brand value, as well as being able to strengthen our subscriber base through the added value we have with our premium product. We try to woo those that aren’t subscribers. It’s truly a valuable investment because we offer a quality product that’s unique and exclusive, which can only be enjoyed by HBO subscribers. That’s what we’ve achieved, to be able to communicate the idea of premium that initially wasn’t very well understood in the market, and now that people do [understand it], they value it and want it. We’ve been able to demonstrate what that means, which is, being superior to traditional television and having a product offering that we consider valuable for premium windowing. It’s an exclusive product, with unique stories that show television content beyond conventions.

WS: How have HBO high-def channels faired in the region? Has there been a higher adoption of the technology among subscribers in Latin America?
GROSSMAN: Without a doubt. I think we were pioneers in launching an HD service in order to motivate our affiliates, and DTH and cable operators to migrate to the format. When people have the opportunity to watch HD content and then see standard-def, they say, “No, I’m going back to HD.” People accept it, they look for it and they demand it, but unfortunately it’s up to our affiliates to be able to offer the service completely.

As premium content programmers, all of our feeds are in HD. If an affiliate can offer our channels in HD, perfect, if not, we offer the channels in SD. But the truth is, HD is here to stay and there are more channels that offer the service each day.

I think HD will be a standard service by the end of the year or by mid-2014. I would say that 90 percent of affiliates or subscribers would be able to enjoy HD product.

WS: Are you still committed to narrowing launch dates between series and movies in the U.S. and Latin America? How are you working with HBO’s productions from the U.S.?
GROSSMAN: We’re still committed to reducing launch windows with movies from the major studios. Sometimes we launch within 10, 11 or 12 months. We respect marketing windows. We’ve been able to launch original series simultaneously, beginning last year with Game of Thrones and True Blood. The feedback from our subscribers has been fabulous. We will continue on this path. This year we will launch the third season of Game of Thrones simultaneously with the U.S., as well as the sixth season of True Blood. We will probably launch Boardwalk Empire also together with the U.S. We’ll select the product we think will be the most attractive for our subscribers and will launch simultaneously.

This has been very well received by our subscribers because one, they don’t have to pirate content to enjoy a series. We’re delivering with total and absolute quality, 100 percent legal at the same time it airs in the U.S. And two, it reinforces the package value. We give viewers the benefit of enjoying a global release.

WS: The launch of HBO GO was one of the company’s highlights in 2012. It launched in Brazil, then Colombia, and Venezuela and on MiDIRECTV in Argentina, Chile, Peru, Ecuador and Uruguay. Do you plan to launch it pan-regionally in 2013? What results has it achieved since launch?
GROSSMAN: We chose Brazil for launch and the response has been spectacular. We launched HBO GO with DIRECTV in Venezuela, Colombia, Argentina, Chile, Peru, Ecuador and Uruguay and this year we’re launching in Mexico in the second semester.

We’re offering a platform where you can access HBO when, where and how you want. This is another added-value benefit for our complete premium package subscribers.

We’ll continue to work on this throughout 2013, as well as launching the on-demand service with different affiliates. Currently HBO GO is available only on computers. We’ll be launching on tablets and smartphones in the Mexican market for mid-year.

This is the future and no one can stop it. It’s something all programmers and non-programmers alike are working on. What separates us from the competition is we’re backed by the HBO brand. When people browse our application or look for certain content, what they’ll find is a library of over 1,200 hours of exclusive premium content, and many times [it has] never been seen before in Latin America.

WS: The company will be showcasing original productions like the second season of Prófugos this year, as well as the debut of O Negócio and Sr. Ávila. How important are local original productions for the Latin American market?
GROSSMAN: Original production has been very important. It has shown us that we can tell different stories, that there’s great talent and many narrative opportunities in Latin America that we can support and produce. It offers us a closer relationship with viewers that’s priceless because it reaffirms what we like to call the [star system]. It’s possible to see a Latin American production on HBO and you can sit and watch the star having a coffee in Mexico, Chile or São Paulo. So there’s a connection between what you see on HBO and the actor drinking that coffee. I think that’s what’s great about this industry. We’re almost done with post-production with Sr. Ávila. The series centers on the double life that Ávila lives. He’s a life-insurance salesman, a family man, who also works as a contract killer. It’s a fantastic series with great production values. We finished filming Prófugos in December and we’re in the post-production phase.

There are plenty of plans for production that we are analyzing in different genres. We’re looking at a comedy, as well as continuing what we started with Mujer de fases and (hdp). When we launch a new series we leave a second season pre-written or pre-planned and that’s why we were able to have a season second for Sr. Ávila and start production toward the end of 2013.