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Home Box Office, Inc.

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Home Box Office, Inc.
Company typeSubsidiary
IndustryMedia and entertainment
Founded1972; 54 years ago (1972)
FounderCharles Dolan
Headquarters
Manhattan, New York City
,
United States
Key people
Gerald M. Levin (former CEO), Nicholas "N.J." Nicholas Jr. (former president)
ProductsHBO, Cinemax, HBO Films
OwnerWarner Bros. Discovery
ParentWarner Bros. Discovery Streaming & Studios

Home Box Office, Inc. (HBO) is a multinational American media and entertainment corporation under the ownership of Warner Bros. Discovery, operating within its Streaming & Studios segment. Established by Charles Dolan and based at 30 Hudson Yards in Manhattan, its primary holdings encompass the premium cable channel HBO, its companion network Cinemax, and HBO Films. Previously, the company managed the streaming service HBO Go, while the HBO-branded streaming platform HBO Max is overseen by Warner Bros. Discovery Global Streaming and Interactive Entertainment, sharing executive leadership with Home Box Office, Inc.

Additionally, HBO possesses equity interests in international HBO and Cinemax outlets, predominantly administered through the sister entity Warner Bros. Discovery International. The company has been instrumental in pioneering cable television innovations, including launching the first satellite uplink for a television network and producing original content tailored for subscription-based TV, thereby securing a significant competitive edge within the entertainment sector.

Early Years as Sterling Communications

The origins of HBO, Inc. trace back to December 1, 1965, when Charles Dolan, a trailblazer in commercial cable technology, obtained a franchise license from the New York City Council to establish a cable television system in Lower Manhattan. Alongside Dolan, permits were also granted to TelePrompTer Corporation and CATV Enterprises for other regions of New York City. Dolan’s initial enterprise, Teleguide, launched in 1962 through Sterling Movies U.S.A., delivered tourist information and news via closed-circuit television to hotels and buildings throughout the New York metropolitan area.

Operating under Sterling Information Services, Manhattan Cable TV Services commenced limited cable operations in September 1966, marking the first urban underground cable system in the United States. Instead of utilizing overhead wiring, Sterling installed cables beneath Manhattan streets to comply with municipal regulations aimed at minimizing weather-related service interruptions. Time-Life, then part of Time Inc., invested in Sterling Manhattan Cable, making it one of its earliest cable investments. Despite this support, Sterling Manhattan endured financial losses for six years due to costly underground installation (up to $300,000 per mile) and a modest subscriber base (approximately 400 by 1967). On August 27, 1969, Sterling Communications consolidated control by purchasing Time-Life’s 49% share in Sterling Manhattan for $1.84 million, which increased Time-Life’s stake in Sterling Communications from 25% to 44.5%.

In pursuit of expansion, Dolan envisioned "The Green Channel" during a family vacation in 1971—a cable-originated channel delivering uncut theatrical films and live sports without commercials for a fixed monthly fee. This model intended to generate income through subscriber payments and distribution agreements with other cable operators. Although initially met with reluctance from Time-Life executives due to regulatory concerns and industry apprehension toward pay television, Dolan ultimately gained their endorsement.

After an FCC decision clarified that local authorities could not restrict subscription TV services within cable franchises, Sterling Communications—which included Sterling Manhattan, Sterling Nassau Cable Television, Allegro Films, and Television Presentations Inc.—applied for FCC permission to launch pay TV services. This initiative aimed to financially support Sterling Manhattan’s public-access channel burdened with $1 million in startup debt and annual deficits of $250,000. On September 10, 1971, the FCC granted preliminary approval for subscription television operations. Subsequently, on November 2, Time Inc.’s board sanctioned the "Green Channel" project and awarded Dolan $150,000 for development purposes.

Origins and Sterling's Dissolution

The pay television channel Home Box Office (HBO) was created in 1972 by Charles Dolan as a collaborative effort between Sterling Communications and Time Life Broadcasting Inc. Initially planned to be named the "Sterling Cable Network," the provisional title "Home Box Office" was adopted before its official debut on November 8, 1972, via Teleservice Cable’s system in Wilkes-Barre, Pennsylvania. The early lineup featured theatrical movies and special events obtained through a partnership with Madison Square Garden, often presented as double features or combined with sports broadcasts or specials. By 1974, HBO broadened its programming to incorporate concert specials, children’s shows, and educational series. Operating out of the Time-Life Building in Midtown Manhattan, HBO delivered content to cable providers in the Northeastern United States using microwave relay towers.

On February 28, 1973, Sterling Communications spun off HBO into a separate entity named Home Box Office, Inc., while Time Inc. increased its ownership stake to roughly 75% through direct investments and stock acquisitions. Following disputes with Time-Life management, Dolan stepped down as CEO and utilized his returns to found Long Island Cable Community Development Co., which later evolved into Cablevision Systems Corporation. Gerald M. Levin, who had served as CFO and vice president of programming at HBO, replaced Dolan as president and CEO. J. Richard Munro, a Time Life vice president, assumed the role of chairman for Home Box Office and its affiliated companies.

In May 1973, facing substantial startup expenses, Time announced intentions to sell its controlling interest in Sterling Communications to Warner Communications for $20 million; however, this transaction collapsed by June due to issues with franchise agreements. Subsequently, on July 19, 1973, Time Inc. agreed to purchase Sterling for $6.2 million and finalized the acquisition on September 18. This acquisition dissolved Sterling and transferred control of HBO and Manhattan Cable to Time-Life’s division. The Sterling brand was retired from cable systems, with Manhattan Cable becoming Manhattan Cable Television. At the time of acquisition completion, HBO had about 8,000 subscribers across 13 cable systems but struggled with high subscriber turnover due to limited program diversity.

On April 11, 1975, Levin and Time-Life revealed plans to distribute HBO nationally via satellite by leasing a transponder from RCA Americom Communications (later SES Americom). This strategy aimed to expand HBO’s availability across multiple states through cable providers. HBO secured a five-year lease on a transponder aboard the forthcoming Satcom I satellite and collaborated with Scientific Atlanta to develop ground station infrastructure.

HBO commenced uninterrupted satellite broadcasts on September 30, 1975, launching with the "Thrilla in Manila" boxing match featuring Muhammad Ali versus Joe Frazier. The broadcast reached cable operators in Florida and Mississippi alongside existing microwave relay customers in the Northeast. Initially utilizing Westar 1 transponder service for three months, HBO transitioned to Satcom I following its commercial activation in February 1976. This satellite distribution breakthrough dramatically increased HBO’s reach—from just 8,000 subscribers in September 1973 to over three million nationwide by 1980—covering all fifty states through cable and MMDS providers.

HBO’s innovative approach to satellite delivery set a precedent for other cable networks; notably, Ted Turner’s WTCG-TV (later known as TBS) became the first basic cable channel transmitted nationally via satellite in December 1976, pioneering the "superstation" model. Likewise, the CBN Satellite Service (now Freeform) launched via satellite in April 1977, further expanding basic cable offerings inspired by HBO’s example.

In May 1976, Gerald Levin was elevated to chairman and CEO of Home Box Office Inc., with Nicholas "N.J." Nicholas Jr., formerly president of Manhattan Cable, appointed as president.

Home Box Office v. FCC; Telemation acquisition

On March 20, 1975, the Federal Communications Commission (FCC) revised regulations concerning pay-cable services, imposing limits on Home Box Office (HBO) and other subscription TV providers by restricting programming content. The rules allowed no more than 90% of the schedule to consist of theatrical films and sports, prohibited movies released within three years of their theatrical premiere, and granted broadcast exclusivity for certain sports events to protect over-the-air transmissions. These constraints posed significant challenges to HBO’s operational model by limiting access to recent films and popular sports broadcasts.

On November 3, HBO, along with five cable operators including Viacode and TelePrompTer Corp., filed an appeal against these regulations in the U.S. Court of Appeals. They contended that the rules violated antitrust statutes, exceeded the FCC’s jurisdiction, and infringed upon First Amendment protections by restricting content availability. Meanwhile, broadcast networks such as NBC and ABC resisted easing these restrictions, aiming to prolong exclusive theatrical release windows on their channels.

Although the FCC tightened controls on movies and sports programming, it proposed easing restrictions on airing television series that had either never been broadcast or had fewer than 50 episodes in syndication for pay services. These proposals faced opposition from cable programmers and the Motion Picture Association of America.

In June 1976, HBO acquired Telemation Program Services, a distributor servicing approximately 180,000 subscribers across 40 cable systems. This strategic purchase aimed to enhance HBO’s distribution reach and enable tailored feeds for cable systems electing to exclude specific content. In 1980, Telemation merged with HBO Program Services.

The District of Columbia Appeals Court ruled on March 29, 1977, in favor of HBO in Home Box Office v. FCC, invalidating the FCC’s anti-siphoning regulations for cable television. The court determined that the FCC’s restrictions infringed upon First Amendment rights because cable bandwidth was not a limited resource justifying prior content limitations. This ruling eliminated major obstacles preventing HBO and similar services from freely acquiring movie and sports rights, significantly strengthening their competitive positioning in content offerings. The U.S. Supreme Court declined to review this decision later that year, cementing its legal authority.

This pivotal case played a crucial role in HBO’s expansion by facilitating broader content acquisition strategies essential for revenue growth and solidifying its standing within the pay-TV market.

Early growth; legal battles over indecency laws

As HBO expanded its national footprint, Time-Life endeavored to create supplementary pay services for its subscriber base. Its initial venture was Take 2, a family-friendly movie channel launched in April 1979 as an affordable "mini-pay" option targeting budget-conscious cable customers. However, sluggish subscriber uptake led to its closure in January 1981.

Subsequently, HBO introduced a more premium "maxi-pay" service: Cinemax. Announced in May 1980 to rival The Movie Channel, Cinemax debuted on August 1, 1980, across 56 cable systems in the Eastern and Central Time Zones, followed by a West Coast feed in September. Unlike Take 2, Cinemax thrived by featuring classic films from the 1930s through the 1970s alongside unedited theatrical releases. It leveraged limited channel capacity and consumer demand effectively. Cinemax was marketed as a discounted bundle with HBO. Over time, Cinemax diversified into music specials and original programming such as SCTV Channel and Max Headroom, gaining particular recognition for late-night softcore adult content—a defining element of its subscriber appeal and cultural identity. Starting in 2011, this adult programming was gradually phased out as Cinemax shifted focus toward mainstream films and original action series; by 2018 it was removed entirely from both linear and on-demand platforms.

Throughout the 1980s, HBO contested various municipal and state laws restricting "indecent" cable programming, asserting these statutes violated First Amendment protections and jeopardized the subscription-based pay-TV business model. Significant legal victories included federal rulings against Utah’s indecency laws in 1981 and 1985—decisions upheld by the U.S. Supreme Court in 1987—and federal court decisions between 1983 and 1985 invalidating a Miami ordinance threatening franchise revocation over "obscene" content. These outcomes reinforced HBO’s stance against broadcast-style content regulation.

On September 27, 1984, Home Box Office Inc. acquired a 15% ownership interest in Black Entertainment Television (BET) through a financial arrangement involving leased transponder payments. BET later bought back Time Warner’s shares in April 1996 for $58 million. In 1985, Home Box Office Inc. relocated its headquarters to Midtown Manhattan’s Bryant Park area at West 42nd Street and Sixth Avenue.

Film and television production

During the 1980s, Home Box Office, Inc. expanded its operations beyond cable television. In 1982, HBO partnered with Columbia Pictures and CBS Theatrical Films to establish Tri-Star Pictures, a joint venture aimed at sharing the escalating expenses of feature film production. The company's inaugural release was The Natural in 1984. By 1987, Tri-Star broadened its scope by launching Tri-Star Television to enter the TV production arena. Toward the end of 1985, CBS and HBO/Time Inc. divested their shares to Columbia Pictures, which subsequently absorbed Tri-Star into Columbia Pictures Entertainment. As of 2020, TriStar functions as part of Sony Pictures Entertainment, with its television division consolidated into Sony Pictures Television.

HBO initiated its own film production efforts in 1983 under the banner HBO Premiere Films, focusing on original movies and miniseries designed for cable audiences with enhanced budgets and featuring prominent actors such as James Stewart and Michael Douglas. This division was rebranded as HBO Pictures in 1986 and extended its activities to include independent film production. In 1985, HBO co-financed the comedy Three Amigos! alongside Orion Pictures. Additionally, HBO collaborated with Thorn EMI to establish Silver Screen Partners, a limited partnership dedicated to financing feature films; however, most releases between 1983 and 1986 failed to achieve commercial success.

In 1986, HBO launched HBO Showcase with an emphasis on producing quality dramatic content; one such project, Age Old Friends (1989), garnered Primetime Emmy Awards. By 1996, HBO Showcase gave way to HBO NYC Productions, which concentrated on developing original movies and drama series. In October 1999, Time Warner merged HBO Pictures and HBO NYC Productions into HBO Films, which expanded its focus to include theatrical releases distributed by Warner Bros. Pictures while continuing original movie production for cable. Another limited partnership, Cinema Plus L.P., produced titles like Ricochet (1991), though most of these films did not perform well commercially.

Beyond its flagship channel productions, HBO established HBO Downtown Productions in 1988 to create comedy specials for both itself and other networks such as Comedy Central (including shows like Politically Incorrect with Bill Maher). In 1990, it founded HBO Independent Productions (HIP) in Los Angeles to develop sitcoms and specials for broadcast and cable television as well as lower-budget films. HIP's notable series over its sixteen-year tenure included Martin, Roc, The Ben Stiller Show, and Everybody Loves Raymond.

Home video

In the early 1980s, HBO collaborated with Vestron Video to distribute select made-for-cable films. On February 21, 1984, HBO announced plans to create a home video division and partnered with Thorn EMI Video to form Thorn EMI/HBO Video in November of that year, distributing both Thorn EMI's titles and HBO programming. To enhance its catalog beyond modest in-house output, Thorn EMI secured distribution agreements with mid-tier and independent studios such as Orion Pictures and New Line Cinema.

By August 1986, Cannon Films acquired Thorn EMI’s share, rebranding the operation as HBO/Cannon Video. This venture continued signing distribution deals with companies including Kings Road Entertainment, Sports Illustrated, and De Laurentiis Entertainment Group; however, few Cannon-produced films were released due to existing licensing constraints. Disputes with Carolco Pictures compelled HBO/Cannon to pay $43 million to return two titles that Carolco then licensed to International Video Entertainment. Moreover, Cannon repurchased several titles originally slated for release through HBO/Cannon and subsequently re-licensed them to Warner Home Video under a $75 million loan arrangement.

Amid Cannon’s financial difficulties in April 1987, HBO acquired Cannon’s stake and renamed the division HBO Video. To maintain a steady flow of new content, HBO secured an eight-film co-production agreement with ITC Entertainment that granted pay cable and home video rights to HBO. The company also actively marketed rental releases and distributed titles from Hemdale Film Corporation such as Hoosiers and Platoon. A legal challenge from Vestron over these titles resulted in a court-ordered recall of Hoosiers rental copies; a settlement permitted limited distribution through early 1988 before rights reverted back to Vestron.

By January 1994, the division was renamed HBO Home Video and shifted its focus from independent film releases toward distributing HBO’s original programming on DVD and Blu-ray formats. It also licensed content catalogs through distributors like Congress Video, Goodtimes Home Video, and Anchor Bay Entertainment. The unit was rebranded as HBO Home Entertainment in 2009 before eventually outsourcing physical product manufacturing to Warner Bros. Home Entertainment and fully integrating into Warner Bros. by 2020.

Expansion of television offerings

On April 1, 1986, HBO initiated a trial of a mini-pay service called Festival, aimed at older cable customers and basic cable users without premium subscriptions. Festival was available on six systems operated by American Television and Communications Corporation but was discontinued on December 31, 1988, due to limitations in headend channel capacity that hindered broader distribution.

Starting January 2, 1989, HBO introduced Selecciones en Español de HBO y Cinemax, a Spanish-language audio track providing simulcasts of recent feature films and live boxing events from HBO and Cinemax. This service was accessible either through second audio program channels or FM radio simulcasts, depending on the cable provider.

By September 27, 1993, Selecciones evolved into two separate Spanish-language channels: HBO en Español and Cinemax en Español. These offered part-time simulcasts featuring first-run Spanish-language films primarily from Mexico, Argentina, and Spain, alongside Spanish-dubbed versions of HBO’s original non-sports shows. This development underscored HBO’s strategic initiative to expand its Hispanic audience and strengthen its international presence.

Time-Warner merger

On March 4, 1989, Warner Communications announced a $14.9 billion merger involving cash and stock with Time Inc. Despite efforts by Paramount Communications to thwart the agreement through hostile takeover attempts, the merger finalized on January 10, 1990, creating Time Warner. Manhattan Cable Television was absorbed into Time Warner Cable, which later spun off in 2009 and merged with Charter Communications in 2016. By 1990, HBO’s subscriber base reached 17.3 million out of a combined total of 23.7 million for both HBO and Cinemax.

On November 15, 1989, Home Box Office, Inc. launched The Comedy Channel, a basic cable network centered on stand-up comedy and comedic programming. Its rival was Viacom's Ha!: The TV Comedy Network, which debuted in April 1990 featuring sitcom reruns. Both networks faced challenges in subscriber growth and profitability due to limited distribution.

On December 18, 1989, Viacom and HBO agreed to merge Ha! and The Comedy Channel into CTV: The Comedy Network, which launched on April 1, 1991; it was renamed Comedy Central on June 1 to avoid confusion with Canada’s CTV Television Network. Time Warner/HBO exited this joint venture in April 2003 when Viacom purchased its 50% stake for $1.23 billion. As of 2020, Comedy Central operates under Paramount Media Networks.

On December 19, 1990, Home Box Office, Inc. established TVKO (later known as HBO PPV), a sports production division within Time Warner Sports and HBO Sports responsible for organizing pay-per-view boxing events including heavyweight champion Evander Holyfield’s bouts. HBO discontinued the HBO PPV service on September 27, 2018, citing increased competition from streaming sports platforms like DAZN and ESPN+, declining viewership figures, difficulties with promoters, and a strategic pivot toward scripted content following the WarnerMedia acquisition.

In 1993, HBO acquired post-theatrical distribution rights for 48 films produced by Savoy Pictures—a company co-founded by Victor A. Kaufman and Lewis J. Korman—which ceased operations in 1997 after limited success. In 2005, HBO Films collaborated with New Line Cinema to establish Picturehouse for independent film distribution; this division closed in May 2008 amid Warner Bros.’ restructuring but was later revived independently by CEO Bob Berney in 2013.

On March 1, 1994, HBO and Showtime Networks introduced a joint content advisory system across their premium channels to assist parents by rating programming based on elements such as violence, profanity, sexual content, and mature themes. An updated system featuring ten content codes was rolled out on June 10, 1994.

On January 7, 1998, Time Warner consolidated its C-band retail operations—HBO Direct and Turner Home Satellite—into a unified retail division under Home Box Office Inc., streamlining distribution for cable networks including TBS Superstation, CNN variants, TNT, Cartoon Network, Turner Classic Movies, and WCW pay-per-view events until WCW ceased operations in 2001.

On October 15, 2014, Home Box Office announced plans to introduce an over-the-top (OTT) subscription streaming service aimed at cord-cutters to compete with Netflix. The service named HBO Now launched on April 7, 2015; it was initially exclusive to Apple TV and iOS devices for three months. This offering complemented HBO Go—a TV Everywhere platform launched in February 2010 for existing cable subscribers.

Under WarnerMedia’s leadership on October 10, 2018, the company unveiled plans for HBO Max—an OTT platform combining HBO content with programming from Warner Bros., WarnerMedia Entertainment properties, and Turner Broadcasting networks. Officially announced on July 9, 2019, HBO Max debuted on May 27, 2020 under WarnerMedia Direct as a distinct platform separate from HBO Go and HBO Now. Existing subscribers were encouraged to migrate to HBO Max as the company gradually phased out HBO Now across digital platforms while maintaining similar user interfaces for Apple and Android applications.

Acquisition by AT&T

On October 22, 2016, AT&T revealed its intention to purchase Time Warner in a transaction valued at $108.7 billion, inclusive of assumed liabilities. This merger integrated Time Warner's media properties, including Home Box Office, Inc., with AT&T’s telecommunications assets such as satellite provider DirecTV and broadband service AT&T U-verse. The agreement received approval from Time Warner shareholders on February 15, 2017. Nevertheless, the U.S. Department of Justice initiated an antitrust lawsuit in November 2017 aiming to prevent the merger. Following regulatory clearance from authorities in Europe, Mexico, Chile, and Brazil, a U.S. court ruled in favor of AT&T in June 2018, enabling the deal to finalize on June 14, 2018. Subsequently, Time Warner became a wholly owned subsidiary under the new name WarnerMedia. This decision was upheld by the U.S. Court of Appeals in February 2019.

In August 2017, HBO and Sky acquired minority interests in British production firm Bad Wolf, recognized for producing the HBO miniseries The Night Of.

On February 28, 2019, Richard Plepler stepped down as CEO of Home Box Office, Inc. after nearly three decades at HBO and over a decade as its leader. Following the merger, strategic disagreements surfaced: Plepler aimed to concentrate on traditional linear broadcasting and increase content spending to achieve $7.5 billion in yearly revenue through expanded programming and new distribution agreements. Conversely, AT&T executive John Stankey emphasized building a streaming service to rival Netflix, culminating in the launch of HBO Max in May 2020.

On March 4, 2019, AT&T restructured WarnerMedia’s holdings into three segments. Home Box Office, Inc., which includes HBO and Cinemax along with their international channels and streaming platforms, was grouped under WarnerMedia Entertainment alongside networks such as TBS and TNT. This division was led by former NBC and Showtime executive Bob Greenblatt. Despite this integration, Home Box Office continued to function as an independent subsidiary. Other Turner assets were assigned to WarnerMedia News & Sports and Warner Bros. Global Kids, Young Adults and Classics divisions.

On May 8, 2019, HBO Home Entertainment was shifted from Home Box Office/WarnerMedia Entertainment to Warner Bros. Worldwide Home Entertainment and Games, consolidating distribution operations.

On August 7, 2020, WarnerMedia underwent another reorganization by combining Home Box Office, Inc. with Warner Bros. Entertainment to establish WarnerMedia Studios & Networks Group. Casey Bloys—HBO/Cinemax President of Programming since 2016 with extensive experience at HBO—assumed responsibility for HBO Max as well as basic cable networks. This corporate restructuring resulted in approximately 150 layoffs at Home Box Office among a total of around 800 job cuts across WarnerMedia as part of efficiency improvements.

WarnerMedia-Discovery merger

On May 17, 2021, AT&T and Discovery, Inc. completed a $43 billion Reverse Morris Trust transaction that spun off WarnerMedia to merge with Discovery’s assets. This combination merged WarnerMedia’s portfolio—including Home Box Office Inc.—with Discovery’s brands such as Discovery Channel, Animal Planet, Discovery+, Eurosport, Food Network, among others. Following the deal, AT&T shareholders held a 71% stake while Discovery shareholders owned 29%. David Zaslav, Discovery’s President and CEO, was named CEO of the newly formed company, succeeding WarnerMedia CEO Jason Kilar.

The merged entity was officially branded as Warner Bros. Discovery on June 1, 2021. Zaslav highlighted the fusion of Warner Bros.’ century-long creative heritage with Discovery’s globally recognized brand known for innovation and inspiration. The merger concluded on April 8, 2022, positioning Home Box Office as a subsidiary within WBD. Casey Bloys remained HBO’s CEO while also overseeing Magnolia Network under Warner Bros. Discovery Lifestyle Brands. Concurrently, Kathleen Finch managed the combined entertainment-focused U.S. basic linear networks by integrating assets from both organizations.

This strategic consolidation enhanced Warner Bros. Discovery’s presence within the media sector by broadening its global reach and diversifying its content offerings to foster future growth and maintain competitive strength.

Current

Divested

Dormant, transferred or shuttered

  • Festival (operated 1986–1988)
  • HBO Boxing Pay-Per-View (active from 1990 until 2018)
  • HBO Home Entertainment (1984–2019; operations transferred to Warner Bros. Home Entertainment)
  • HBO Home Satellite (1986–2007; consolidated into HBO Bulk)
  • Various regional channels including India's HBO Defined and HBO Hits; the HBO Latin America Group (1991–2020); and European outlets such as HBO Netherlands
  • Streaming services phased out or succeeded by Max: HBO Now (2015–2020), HBO Go (2010–2024), HBO Nordic (2012–2021), HBO Portugal (2019–2022), and HBO España (2016–2021)
  • Additional discontinued ventures include: HBO Kids (2001–2024), HBO NYC Productions (1986–1999), Red by HBO (Asian cinema channel; 2010–2021), and Take 2 (1979–1981)

External links

  • (bulk sales for colleges and hotels)
  • Home Box Office on the Internet Movie Database
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