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HBO CTO Otto Berkes quit his job Tuesday after news broke that the cable network is outsourcing the development of its online streaming service, which is set to debut next spring.
HBO had announced in October that it wants to go directly to consumers in 2015, selling them a new streaming service that wouldn’t be part of a traditional cable bundle and would more closely competes with Netflix’s video service. At the time, many assumed that the service would be based on HBO Go, the network’s existing TV Everywhere service for cable subscribers.
However, Fortune reported Tuesday that HBO’s leadership decided to outsource the development of the service to MLBAM instead. The Major League Baseball subsidiary already powers streaming services for WWE and Glenn Beck’s The Blaze network as well MLB’s own streaming service. Executives didn’t have confidence in Berkes and his team to pull off the launch of HBO’s forthcoming streaming service, according to the report.
It didn’t take long for Berkes to respond; Variety relayed news of his exit just hours after the original report came out. The industry publication quoted a memo sent out by Berkes, which reads in part:
[blockquote person=”” attribution=””]“This is a change in direction from what I planned with HBO and the approach will not utilize my overall capabilities. Therefore, I feel that this is the right time for me to move on from HBO.”[/blockquote]