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Os

join:2011-01-26
US
reply to buzz_4_20

Re: I'm not dumb, but I still don't understand

You misunderstand me. I totally agree with you.

My point is that the real price of HBO that the cablecos pay them is substantially less than that retail price point due to all the promos.

It would just be great to have the transparency of the real cost of the premium movie channels compared to the cable channels. I'm not entirely convinced HBO gets more per subscriber than ESPN.



buzz_4_20

join:2003-09-20
Limestone, ME

Slowed down, re-read...

I see your point clearly.

That makes even less sense for them. They would get 100% of the sales instead of whatever they get for the CableCo during negotiations.


elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink

said by buzz_4_20:

Slowed down, re-read...

I see your point clearly.

That makes even less sense for them. They would get 100% of the sales instead of whatever they get for the CableCo during negotiations.

100% of the sales and 100% of the headaches, dealing with consumers, as well as having to deal with IP delivery issues.

Its a lot easier for the boardroom to understand bulk contract sales at $60/household-year via cable and satellite, than try to calculate the rents from 10 million individual monthly IPTV subscriptions.


buzz_4_20

join:2003-09-20
Limestone, ME

So, keep digging in heels leaving potential consumers with no legal alternative to get your content... Seems like a sustainable model.



88615298
Premium
join:2004-07-28
West Tenness

said by buzz_4_20:

So, keep digging in heels leaving potential consumers with no legal alternative to get your content... Seems like a sustainable model.

Yep a cord cutter is not going to pay $1000 a year to get HBO if he can just pirate the show even if he knows it's wrong. Most of the same "pirates" WOULD pay say $15 a month for HBOGo. $1000 year = worth pirating. $180 a year = not so much.

elray

join:2000-12-16
Santa Monica, CA
Reviews:
·Time Warner Cable
·EarthLink
reply to buzz_4_20

said by buzz_4_20:

So, keep digging in heels leaving potential consumers with no legal alternative to get your content... Seems like a sustainable model.

Its quite sustainable.
The average American Household is not going to cut the cord.

Until broadcasters and networks buy out the caps and throttling and assure us of 2K streaming speeds, until the IPTV / OTT STB can be purchased at Best Buy cheap and doesn't have Moto-like bugs, and until the audience affirms its willingness to pay MORE for ala-carte IP delivery, HBO et al will go with the business model they know.