| reply to openbox9
Re: Get with the times... If it didn't make sense to Comcast/AT&T/Verizon why would they strike exclusive deals?
Regardless it still begs the question why? How could they not make *more* money selling directly to customers over a variety of delivery vehicles? |
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openbox9
join:2004-01-26
Alexandria, VA
kudos:2 | I didn't mean to imply that it doesn't make sense for the ISPs, just that it's likely close to a zero-sum game for them.
Just like the Disney model for ESPN, HBO knows that it can generate more revenue by forcing a known pool of consumers into paying additional monthly dues versus taking a chance to potentially sell to an unknown group of consumers. Do you honestly believe that HBO would garner more subscribers as a standalone product than it would be forcing the content upon existing consumers? I doubt it.
OTOH, if enough content owners start making these deals that it exceeds what cable/ISPs are willing to pay, it may generate an interest in opening the model outside of the selective garden. This may lead down a path towards à la carte premium content offerings that we'll never otherwise see from current providers. |
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1 edit | said by openbox9:I didn't mean to imply that it doesn't make sense for the ISPs, just that it's likely close to a zero-sum game for them. Just like the Disney model for ESPN, HBO knows that it can generate more revenue by forcing a known pool of consumers into paying additional monthly dues versus taking a chance to potentially sell to an unknown group of consumers. Do you honestly believe that HBO would garner more subscribers as a standalone product than it would be forcing the content upon existing consumers? I doubt it. OTOH, if enough content owners start making these deals that it exceeds what cable/ISPs are willing to pay, it may generate an interest in opening the model outside of the selective garden. This may lead down a path towards à la carte premium content offerings that we'll never otherwise see from current providers. I think they would get more subs. They would have the existing model plus this HBO Go nonsense for those subs who wish to view the content on their PC's. In addition they could have new subs direct or people that are "cutting the cord" could switch and give HBO money directly. I don't see it as a replacement (not yet at least) but a new way to do business in addition to. |
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| reply to d1gw33d
said by d1gw33d:If it didn't make sense to Comcast/AT&T/Verizon why would they strike exclusive deals? Regardless it still begs the question why? How could they not make *more* money selling directly to customers over a variety of delivery vehicles? Because when a customer is paying for a HBO online subscription separately, they will drop the cable subscription and go for the online subscription exclusively to save money. |
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| said by fifty nine:said by d1gw33d:If it didn't make sense to Comcast/AT&T/Verizon why would they strike exclusive deals? Regardless it still begs the question why? How could they not make *more* money selling directly to customers over a variety of delivery vehicles? Because when a customer is paying for a HBO online subscription separately, they will drop the cable subscription and go for the online subscription exclusively to save money. Actually, that is how I feel. If I can't get the teams I want to watch without the season passes, I have much less of a incentive to get cable/satellite. I would miss HBO but I can't justify $100+ TV bill when I only want HBO and Showtime. If HBO and/or Showtime don't give me any other option I'll either download (the devil on my shoulder) or wait a year to rent it from Netflix (angel on my other shoulder). Either way they still aren't making money from me when they could if they gave me an online option. |
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