It's not in HBO's best interests to worry about the cable providers too much. They're in the catbird seat here. Cable providers can't walk away from HBO. Also, cable providers are going to have a hell of a time defining "undercutting", seeing as many of them include HBO at discounted prices in higher tier cable packages. The HBO streaming service is probably going to be gimped compared to the cable on-demand package, anyway... Currently, HBO offers streaming of hundreds of movies through on-demand and HBO GO. There is no news that they plan to allow movie streaming in this new service. I'd wager there's a 50/50 chance that the new streaming service will be HBO-only content (GoT, Sopranos, Boardwalk, etc) sans movies. Getting the film industry on board is going to require a slew of new licenses and contracts. HBO may just say "screw it" and offer only their products to stream at a reduced price. If it's HBO-only content, I think it'll be in the $8-10/mo range. If it's including movies, then yeah, it will probably be more toward $15/mo but because HBO won't be splitting the revenue with cable providers, there's a good chance they won't go full-price because the market might not support it. Not in a world where Netflix is $8/mo and offers hundreds of thousands more episodes and movies than HBO could ever offer. HBO can price this service at $10/mo and because they've cut out the cable provider middle-man, still make more money per user than the $15/mo cable providers charge for the service.