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Comments on news posted 2014-08-07 12:20:20: Netflix CEO Reed Hastings has long stated that he considers HBO -- not cable operators -- Netflix's primary competitor, even though HBO has yet to offer a standalone streaming service. ..

page: 1 · 2 · next


bigballer

@205.214.216.x

let's see.

Netflix: Fairly cheap (8.99 a month), doesn't require cable, can be viewable anywhere (phones, laptops, tvs, game consoles, very large selection

HBO: pretty expensive, must be coupled with cable, can only watch through tv, more $$ for HBO GO.

mhm, which would i really want??

78036364

join:2014-05-06
USA

Will HBO get it now?

Gee you can offer a stand alone streaming option and make money? who knew?


jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1

How About Profits?

How much of that revenue goes back into licensing agreements for Netflix?

78036364

join:2014-05-06
USA
HBO doesn't have licensing agreements?


jmn1207
Premium
join:2000-07-19
Ashburn, VA
kudos:1
Certainly, but is HBO's current model more profitable, and by how much? Why would HBO break their traditional format if it stands to make a significantly higher profit, despite having similar revenue with a different business model?

78036364

join:2014-05-06
USA
said by jmn1207:

Certainly, but is HBO's current model more profitable, and by how much? Why would HBO break their traditional format if it stands to make a significantly higher profit, despite having similar revenue with a different business model?

because they could make even MORE profit. Remember the content owners once though the VCR would REDUCE profits and try to get it banned. Now they couldn't exist without the home video market. How many billions in revenue were lost all those years fighting the new technology instead of embracing it?


battleop

join:2005-09-28
00000

2 recommendations

said by 78036364:

How many billions in revenue were lost all those years fighting the new technology instead of embracing it?

Going by the typical Bittorrenter train of thought, none.
--
I do not, have not, and will not work for AT&T/Comcast/Verizon/Charter or similar sized company.


mackey
Premium
join:2007-08-20
kudos:14
reply to 78036364

Re: Will HBO get it now?

"They still kick our ass in profits"

So HBO grosses less but makes a lot more profit? Sounds like their model is better.

/M

rahvin112

join:2002-05-24
Sandy, UT
reply to jmn1207

Re: How About Profits?

This post is about revenue, not profit, they are substantially different things. Even though Netflix may be bringing in more Revenue than HBO they are likely to be substantially less profitable if for no other reason than HBO has no sales or collections departments and the vast majority of their content is distributed at no cost to HBO because it's all contracted out to the cable companies.

Hastings still has a bit to go but I hope he's successful. HBO won't make the move till it's to late precisely because they are owned by a cable company.


PlusOne

@73.160.110.x
said by rahvin112:

HBO won't make the move till it's to late precisely because they are owned by a cable company.

HBO is owned by Time Warner, not TWC. TWC is a publicly owned company and has no corporate owner.

elefante72

join:2010-12-03
East Amherst, NY
Reviews:
·Verizon FiOS
reply to mackey

Re: Will HBO get it now?

Until your model is disrupted, hence why Netflix is where they are.
HBO gravy train is on the way out.

I am an HBO sub, but get it for free. Sure Verizon must send them a few bones, but not sure that is long-term...

Once Netflix grows to a certain mass they will raise prices and become more profitable.

elray

join:2000-12-16
Santa Monica, CA

Great News!

Does that mean they'll finally offer comparable content?

78036364

join:2014-05-06
USA
reply to PlusOne

Re: How About Profits?

said by PlusOne :

said by rahvin112:

HBO won't make the move till it's to late precisely because they are owned by a cable company.

HBO is owned by Time Warner, not TWC. TWC is a publicly owned company and has no corporate owner.

Quit injecting facts in here. You ruined a perfectly good rant.

78036364

join:2014-05-06
USA

1 recommendation

reply to elray

Re: Great News!

said by elray:

Does that mean they'll finally offer comparable content?

How do you mean? if you mean newer movies. That's not Netflix fault. The movie studios CHOOSE to fore to make Netflix wait IF they let them have any movies at all.

I also will say HBOGo has less than 300 movies at any one. time FAR fewer than Netflix.

silbaco
Premium
join:2009-08-03
USA
reply to rahvin112

Re: How About Profits?

HBO won't make the move until they actually have a reason to. Their current business model may not be favorable to the internet bloggers, tech forum posters, and occasional cord cutters. But it is clearly working well. They have no reason to try to fix something that isn't broke.

When you make quality exclusive content people are willing to pay for (ex. Game of Thrones) then there is never a time when it is too late.

Cobra11M

join:2010-12-23
Mineral Wells, TX
reply to elefante72

Re: Will HBO get it now?

well of course.. everyone knows Netflix will eventually hit the $15+ a month easy.. but by that time HBO could be done with, why pay for HBO when you can get Netflix and have original content and other content


Quality

@68.42.244.x
reply to 78036364

Re: Great News!

I'll take a smaller movie library with a lot of quality choices over a large one with mostly crap. What gets labeled as quality and crap is obviously subjective but I'll take the selection of movies HBO has over Netflix any day.

ITGeeks

join:2014-04-20
Cleveland, OH
reply to Cobra11M

Re: Will HBO get it now?

And it has shown that when Netflix raises prices they do lose customers. They're not adding that much content to even show why they need to charge $15 per month. If they had more original content and such, yes, but currently NOPE! And it won't be for years to come. Hell they only have a few titles from Tyler Perry. Even new titles or ones that are years old- Netflix can't even get.

ITGeeks

join:2014-04-20
Cleveland, OH
reply to 78036364

Re: How About Profits?

very little. they own/create most of their content.

ITGeeks

join:2014-04-20
Cleveland, OH
reply to PlusOne
TWC does, TW still owns the majority shares in the company.


dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI
kudos:1
reply to 78036364

Re: Will HBO get it now?

Remember HBO started as standalone. They know exactly how to do it. The only reason for them not to do it is because they are getting paid more than they could if they did it. My guess is they are getting a lot of that extra cable money supposedly for all those extra channels. I'm guessing they are getting paid regardless of how many subscriptions they have.

HBOGO is probably just a shot across the bow of the cablecos to remind them to keep paying up.

Just my guess.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16


dnoyeB
Ferrous Phallus

join:2000-10-09
Southfield, MI
kudos:1
reply to ITGeeks
Right. More like than Netflix raising their rates is HBO dropping theirs and/or going independent. I believe Netflix keeps claiming HBO as their competitor because they want to see them in the marketplace. Netflix is likely driving HBO profits up at the moment.
--
dnoyeB
"Then said I, Wisdom [is] better than strength: nevertheless the poor man's wisdom [is] despised, and his words are not heard. " Ecclesiastes 9:16

elray

join:2000-12-16
Santa Monica, CA
reply to 78036364

Re: Great News!

No, Netflix CHOOSES not to pay the studios enough money to obtain those titles; if they have surpassed HBO in revenue, then, what's the problem?

BiggA

join:2005-11-23
EARTH

HBO is unparalleled

In the quality of what they produce. Netflix is doing some amazing stuff, but I'm not sure that Netflix is really directly competing with HBO. They are competing more than Netflix is with regular pay TV though. However, I still want to have both...


DeathK
Premium
join:2002-06-16
Cincinnati, OH

1 recommendation

reply to elray

Re: Great News!

said by elray:

No, Netflix CHOOSES not to pay the studios enough money to obtain those titles;

That's not the way it works. The big content owners have to be open to their latest stuff being on there. The fact is they aren't. They want to maximize profits and not cannibalize home video sales. To expect Netflix to write blank checks to try to change content owners' minds is utterly ridiculous. The amount they pay for the content they do get is bad enough (and extortion attempts from owners like STARZ is laughable).

I'm sick of people giving content owners a free pass and putting the blame squarely on the shoulders of services like Netflix, Amazon, and Hulu. The content owners dictate what is available, where it's available, and when you can watch it. The buck stops with them (if you remain legal).
--
Photos By Greg Strong


Jim Kirk
Premium
join:2005-12-09
Westerville, OH

1 recommendation

Don't confuse elray with facts.


Nope

@162.150.142.x
reply to ITGeeks

Re: How About Profits?

This was true. In 2009, before TW spun TWC off. Not so much now. After 5 years of being publicly traded as a separate company, TWC--like most Fortune 500 companies--is predominantly owned by mutual funds and institutional investors.

silbaco
Premium
join:2009-08-03
USA
reply to DeathK

Re: Great News!

While that is true, the amount Netflix is willing to pay for the latest content isn't exactly enticing compared to other avenues. They could get more recent content if they were willing to pay more competitively.

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to DeathK
I am the last person to give content owners a free pass - even going so far as to suggest we might need to consider (threaten) legislation to pry content loose and encourage wholesale streaming options.

But the bottom line is just that - Netflix isn't willing to pay.
Until they are, comparing them to HBO is just folly.

Kamus

join:2011-01-27
El Paso, TX
reply to Jim Kirk
eltroll