However, it is yet to be decided whether HBO International or HBO Asia will be launched in the country. Both options are being examined, sources said.Sony Entertainment Television and Modi Entertainment Network, which distribute ESPN, were in negotiations with HBO to bring the movie channel into the country. Incidentally, Columbia TriStar is a joint venture partner in HBO Asia.

Sony Entertainment Television chief executive officer Kunal Dasgupta said he was not aware if a decision had been taken on Turner distributing the channel in the country. "We have an agreement with HBO Asia. All the partners have to give their consent for getting the channel into India. We have not agreed so far as we are waiting for the pay market to mature," he said.

However, informed sources said Turner International will still have the option of getting HBO International as the partners in HBO Asia have no say regarding HBO International.

HBO will come as a pay channel and will be priced at around Rs 5 per subscriber, sources said.

HBO had earlier refused to be on the addressable system of 7 Star, a MSO in Mumbai. The MSO was negotiating with the movie channel in December last and was willing to pay Rs 25 per subscriber for 500 customers. Turner, however, wanted Rs 50 per subscriber for at least 5,000 customers on the addressable system, 7 Star director Atul Saraf said.

The entry of HBO could provide stiff competition to STAR Movies and Hallmark. Research conducted by the company has shown that there is a long-term potential for a premium movie channel. STAR Movies, however, has the advantage of selling it as a package with its other channels like STAR Plus and STAR World. Turner has not decided yet whether it should package HBO with TNT Cartoon Network, sources said.

HBO, the Time Warner group company, has over 2,000 movies in its library, comprising the latest blockbusters from Hollywood. HBO also produces award-winning documentaries. The channel is available in 40 countries including the US, Latin America, Asia and Central Europe.

There are obvious synergies between Turner and HBO, apart from the fact that they are both Time Warner companies. Turner, like HBO, has its own Hollywood movie-based entertainment channel - TNT. TNT is programmed primarily out of Turner's library of over 2,500 Warner Bros. and MGM movies as well as Turner's original productions.

Turner India has built up a nationwide network comprising over 25 distribution sales executives and regional managers. The company has also established a full-fledged customer services wing at its New Delhi headquarters with substantial marketing support.

Turner distributes TNT Cartoon Network, which is digital encrypted. The company claims to have a distribution reach of 8.5 million cable households.