Amazon has added The Sopranos and The Wire to its library of TV shows after signing an exclusive deal with HBO, home of the hit shows.
The exclusive agreement, announced on Tuesday, marks the first time that Time Warner-owned premium cable channel has struck such a deal with an online video provider. Until now, outside of HBO’s own channels, its shows have been available only for purchase or DVD rental.
Starting May 21 Amazon Prime's instant video service will allow people to stream old HBO shows including Six Feet Under, The Wire, Big Love, and Deadwood as well as early seasons of Boardwalk Empire and True Blood and mini-series including Band of Brothers and John Adams.
HBO has its own streaming service, HBO Go, that allows subscribers to watch the latest episodes of shows including Game of Thrones, Veep and Looking, but that is linked to cable subscription. HBO Go will also now be available via Amazon’s new set-top TV device, Fire TV, still only with a cable subscription.
The deal is limited to the US at present. In the UK BSkyB owns the rights to much of HBO's back catalogue. An Amazon spokeswoman said there were no immediate plans for a wider rollout. "We are always looking to add content in all our territories," she said.
Terms of the deal were not disclosed but the agreement has been clearly structured to avoid eroding subscriber demand for HBO.
Cable companies have become increasingly concerned about “cable cutters” – people who opt not to pay for an expensive cable TV package and instead rely on the internet for their TV.
HBO’s new shows won't become available on Amazon for three years from HBO's original broadcast, meaning that the first season of Girls will be available next year and Game of Thrones, HBO's current biggest hit, isn't yet included.
But the deal will be a major boost for Amazon’s library after it increased the price of its Prime service – which includes free shipping and access to streaming content – to $99 a year in March.
“HBO has produced some of the most groundbreaking, beloved and award-winning shows in television history, with more than 115 Emmys amongst the assortment of shows coming to Prime members next month,” said Brad Beale, director of content acquisition for Amazon. “HBO original content is some of the most-popular across Amazon Instant Video – our customers love watching these shows. Now Prime members can enjoy a collection of great HBO shows on an unlimited basis, at no additional cost to their Prime membership.”
“Amazon has built a wonderful service – we are excited to have our programming made available to their vast customer base and believe the exposure will create new HBO subscribers,” said Charles Schreger, president of programming sales for HBO.
The deal comes amid increasing competition among online video providers. On Tuesday AT&T and an investment firm run by former News Corp executive Peter Chernin announced they were launching an online video venture to rival Amazon, Netflix and Hulu.
AT&T and Chernin Group have committed more than $500m in funding toward the venture.
As the competition has increased, Netflix, the largest online streaming service, has been building its own library of content with award winning shows including House of Cards and Arrested Development. Last year it signed a deal with Disney’s Marvel to develop show based on its pantheon of comic heroes including Daredevil.
On Monday Amazon Prime rival Netflix announced it would increase the price of its $7.99 streaming subscriptions by $1 or $2 a month for new subscribers.
