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This is a sub-selection from Why a competitor?

JPL
Premium
join:2007-04-04
Downingtown, PA
kudos:4
reply to nfotiu

Re: Why a competitor?

said by nfotiu:

A little narrow minded to see hbo as a competitor. Standalone hbo go would encourage more cord cutting, which would probably help netflix. If Netflix was smart, they'd court hbo and resell hbo as a 15 dollar add on to Netflix. Netflix has a great infrastructure to offer hbo with apps on every smart tv, blu ray player, phone, tablet, game console,etc.

Netflix desperately needs to offer some more content, even if they have to offer it as a premium priced option. If not, where are the growth opportunities? They are probably getting close to saturating the market with their current model.

HBO has already stated why they wouldn't sell to Netflix. They (HBO) believe they're a premium source of entertainment, and they think that Netflix charges too little for their streaming service. They said outright that they wouldn't even consider such a move (having Netflix stream their content) unless Netflix first raised their prices to be more in line with a 'premium' service.