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keenan424

join:2003-01-13
Santa Rosa, CA
reply to Os

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

said by Os:

The real question here through all this is what the cable companies are paying HBO per subscriber.

As of about a year ago, HBO receives $6 per subscriber from their carriers. Starz charges $2.50 while Showtime charges $2.00.

Os

join:2011-01-26
US
Reviews:
·Comcast
Now is there any sort of discount to the providers for not providing all the feeds? If there isn't, then why don't they? It's not like additional SD channels eat up any significant bandwidth.

It looks like my intuition was right. There is no doubt knowing that $6 figure that a Netflix-like HBO standalone service can make money, and can be opened up to a wealth of new customers. The days of needing the middlemen (cablecos and satellite) are over, the only things holding us back are not the technology, but the protection of legacy revenues both through regulations, caps/overages and sweetheart deals.

I actually think the one who could shake things up might not be HBO, but Epix. It's got the backing of Viacom, and doesn't receive the advantages of carriage. Comcast, TWC and DirecTV won't touch it. It's also got a large online component, and I believe some content sharing still with Netflix.

Should it exist? Probably not. It only came to be due to the CBS/Viacom split (Showtime going to CBS). But to expect the rascal in the room to be the industry standard might be too optimistic.

Sammer

join:2005-12-22
Canonsburg, PA

1 edit
said by Os:

I actually think the one who could shake things up might not be HBO, but Epix. It's got the backing of Viacom, and doesn't receive the advantages of carriage. Comcast, TWC and DirecTV won't touch it. It's also got a large online component, and I believe some content sharing still with Netflix.

Should it exist? Probably not. It only came to be due to the CBS/Viacom split (Showtime going to CBS). But to expect the rascal in the room to be the industry standard might be too optimistic.

Considering that CBS and Viacom are still controlled by the same Redstone family that controlled them when they were together I doubt the split had much to do with Epix. It probably had more to do with Showtime's inability to renew contracts with Lionsgate and MGM who are Epix joint venture co-owners with Viacom.