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HBO Unveils Cinemax Walled Video Garden
Max Go follows 'pay to play' HBO Go ISP model....
by Karl Bode Friday 10-Sep-2010 tags: Video · business · content · consumers
Earlier this year HBO unveiled HBO Go, a new walled-garden broadband video platform that offers HBO content to users online -- if you already pay for HBO on traditional cable and if your ISP has struck a partnership to carry the service. That latter catch, pioneered by ESPN for their ESPN3 service, has been taking flak for disrupting the traditional consumer content access model. HBO has now launched a similar service for HBO-owned Cinemax dubbed Max GO, and just like HBO Go, the service requires you pay for the TV-version of Cinemax, and have an ISP willing to pony up the cash for the privilege of offering the service. Eager to get any edge they can against cable TV competitors, Verizon is of course first out of the gate to strike a deal to offer access to the service.

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spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
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Nothing to see here

Or should I say: NETFLIX!
Eat a big one HBO GO!
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BBBanditRuR
Dingbits

join:2009-06-02
Parachute, CO
Reviews:
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Re: Nothing to see here

+1

Netflix = easy & affordable

Walled Garden = Pay for Cable + Pay for Online Access + Be lucky and have ISP (who passes the costs to you)

We need a Sesame Street, "One of these business models is going to fail...".
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SLD
Premium
join:2002-04-17
San Francisco, CA

1 edit

You want my business??

I'd love to purchase current HBO content for a fair price online. But I'm not subscribing to 60+ cable channels that I don't want just for the privilege to pay for HBO on top of that!
FAIL again HBO!
I'll just wait 9 months and watch it on NetFlix.
caco
Premium
join:2005-03-10
Whittier, AK

1 edit

Content owners refuse to get rid of middleman

HBO akaTW is basically double dipping and will continue to do so as long as folks use their services. There is no reason they should not be offering this to anyone who has a data connection.
--
Politicians and diapers have one thing in common. They should both be changed regularly, and for the same reason.

skuv

@rr.com

Re: Content owners refuse to get rid of middleman

How is HBO or Time Warner Inc double dipping? They are only getting subscription fees for HBO subscribers, they are not charging fees to the subscribers that watch online.

Or do you think Time Warner Cable is still part of Time Warner Inc? They are not, and have not been for a long time now.

And if you read this article, you would see that Verizon FIOS actually gets the new Max Go even before Time Warner Cable does.
caco
Premium
join:2005-03-10
Whittier, AK

1 edit

Re: Content owners refuse to get rid of middleman

TW the media company owns HBO. So lets say you have Fios and you are paying for HBO. Now HBO come in a says to VZ hey will let you subs and only your subs to get HBO GO for x price, Verizon pays even thought they already pay x amount per subscriber for HBO the channel. So basically HBO is double dibbing since VZ is just going to pass that cost of offering HBO GO to their subscribers. No such thing as free in real world.
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Politicians and diapers have one thing in common. They should both be changed regularly, and for the same reason.
openbox9

join:2004-01-26
Alexandria, VA
kudos:1

Re: Content owners refuse to get rid of middleman

It's not really double dipping, it's offering an additional service for a fee. Businesses up-sell their services all of the time. Charging the ISP to serve you and then turning around and charging you for that service would be more akin to double dipping.

mob
Moderhated
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join:2000-10-07

I would bet money

I would bet money that all "Max GO" will really be is just the same tired crap from "HBO Go" just a month behind.

skuv

@rr.com

Re: I would bet money

You would lose money.

Cinemax gets many movies before HBO, and HBO gets many movies before Cinemax.

Cinemax also has many things that are never shown on HBO, and HBO has many more things that are never shown on Cinemax.

How much money do I win?
stanleycr1

join:2008-12-02
Ivor, VA

NETFLIX


NETFLIX,NETFLIX,NETFLIX
MADx

join:2005-05-25
Richmond, IN

Re: NETFLIX

I agree NETFLIX. The line up thats coming to instant stream is getting better, and better, and better.

unknvoip
RIP goose
Premium
join:2006-07-25
Rochester, NY
kudos:1

Why?

Why would I do this??? Why would I want to stream HBO or Cinemax when I am in the process of getting all my online content onto my TV?

HBO and Cinemax are already on my TV! (or would be if they didn't cost too much already)
d1gw33d

join:2009-06-20
Clovis, CA

Get with the times...

I really don't understand this. Who does this benefit? HBO could be collecting dues from Cable & Sat subs *and* offer a robust online packing for $4.99-$9.99/mo directly to the consumer.

But yes by all means attempt some model that makes zero sense to anyone except your buddies at Comcast/AT&T/Verizon.

People will continue to download your content at an alarming rate because you offer no viable alternative.
Network Guy
Premium
join:2000-08-25
New York
Reviews:
·Verizon Online DSL
·Optimum Online

Re: Get with the times...

said by d1gw33d:


People will continue to download your content at an alarming rate because you offer no viable alternative.
Yep. Bittorrent for the win.

Of course execs refuse to accept this reality. It doesn't bode well for shareholder value.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Get with the times...

said by Network Guy:

said by d1gw33d:


People will continue to download your content at an alarming rate because you offer no viable alternative.
Yep. Bittorrent for the win.

Of course execs refuse to accept this reality. It doesn't bode well for shareholder value.
What reality? That people want to access content without paying?
Network Guy
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join:2000-08-25
New York
Reviews:
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Re: Get with the times...

said by fifty nine:


What reality? That people want to access content without paying?
That Netflix and many other cheaper alternatives exist. Their crap isn't all that great or exclusive to begin with.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

1 edit

Re: Get with the times...

said by Network Guy:

said by fifty nine:


What reality? That people want to access content without paying?
That Netflix and many other cheaper alternatives exist. Their crap isn't all that great or exclusive to begin with.
Netflix is $9- $10, HBO is $12 - $15 from most cable providers and you get the TV channels in addition to the streaming. OK so it's 5 bucks a month less, but the way I see it, HBO isn't really interested in streaming but is providing it as a convenience to people who want it. They are probably also feeling the market.

I want to see how long the unlimited $10 streaming from netflix will last when they have to cater to more demand and movie licensing fees go up. The cost to produce the average feature film isn't cheap.
Network Guy
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join:2000-08-25
New York
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Re: Get with the times...

said by fifty nine:

I want to see how long the unlimited $10 streaming from netflix will last when they have to cater to more demand and movie licensing fees go up. The cost to produce the average feature film isn't cheap.
Netflix offers a lot more content for less, even if it's not content that HBO fans are interested in.

I'm sure if Netflix has to cross the price hike bridge, many may consider other alternatives as well. Their pricing can be conceived as both disruptive and unsustainable, depends on which way the industry starts to go.

Unless you can't live without HBO, it's pretty stupid to pay extra for the convenience given the alternatives.

One can argue that $11 to catch a flick at the movie theater is ridiculous. While the lines at the local movie theater are getting shorter these days, some people still pay it.
d1gw33d

join:2009-06-20
Clovis, CA
What is your thought process here? You come in and defend this route HBO is taking while back handing Netflix? To what purpose?

Netflix offers a decent selection on a variety of devices for a flat rate while giving you access to a huge physical media library. Rates will probably go up. As you mentioned it has nothing to do with Netflix and everything to do with Hollywood / Studios. Which quite frankly seems to have the same mind set as HBO.

Control the content as much as possible, hold on to old business models and refuse to innovate distribution models.

You seem to also want to sniff out any possibility of piracy from users posting here and assume anyone that downloads content just wants it for free. Come back to Earth.

If you think it's that black and white you're out of touch or a corporate whore.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Get with the times...

said by d1gw33d:

What is your thought process here? You come in and defend this route HBO is taking while back handing Netflix? To what purpose?
Because they do apparently have different goals, but people seem to think they have the same goal.

In other words, I don't get the impression that HBO wants to be another netflix.

You seem to also want to sniff out any possibility of piracy from users posting here and assume anyone that downloads content just wants it for free. Come back to Earth.
When people place Bittorrent as a viable alternative, my conclusion that people "just want content for free (or close to it)" is absolutely correct.
d1gw33d

join:2009-06-20
Clovis, CA

Re: Get with the times...

I was discussing 2 different things. People do and will continue to pirate HBO's content due to lack of availability in what would seem is a viable process.

Obviously there are plenty of people just saving a buck and stealing but that's not what I was implying by "viable alternative."

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Get with the times...

said by d1gw33d:

I was discussing 2 different things. People do and will continue to pirate HBO's content due to lack of availability in what would seem is a viable process.

Obviously there are plenty of people just saving a buck and stealing but that's not what I was implying by "viable alternative."
People continue to pirate because they don't want to pay the asking price. That doesn't make it right.

digitalfreak
Premium
join:2005-12-09
Blacklick, OH
I would gladly pay $0.99 per episode to rent season 3 of True Blood in HD quality over the Internet right now. I'm sure as shit not going to pay $12/mo+ for HBO since they have nothing else I'm interested in.
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fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Get with the times...

said by digitalfreak:

I would gladly pay $0.99 per episode to rent season 3 of True Blood in HD quality over the Internet right now. I'm sure as shit not going to pay $12/mo+ for HBO since they have nothing else I'm interested in.
That's the problem. At 0.99 per episode with no commitment you're not a reliable, profitable revenue stream. HBO and others really couldn't care about losing a customer like you. (No offense to you personally).

Alcohol
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said by digitalfreak:

I would gladly pay $0.99 per episode to rent season 3 of True Blood in HD quality over the Internet right now. I'm sure as shit not going to pay $12/mo+ for HBO since they have nothing else I'm interested in.
Wait what? True blood season 3 is 12 episodes. Unless you're saying you can't finish 12 episodes in a month, i don't see your point.
--
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the cerberus

join:2007-10-16
Richmond Hill, ON
Reviews:
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2 edits
said by fifty nine:

said by Network Guy:

said by d1gw33d:


People will continue to download your content at an alarming rate because you offer no viable alternative.
Yep. Bittorrent for the win.

Of course execs refuse to accept this reality. It doesn't bode well for shareholder value.
What reality? That people want to access content without paying?
zzzzzz
Turn on your tv with a digital antenna attached, there is some free tv.
The reason those channels are able to offer you free tv is because they have advertisements.

Not only do they have ads, but they interrupt the content, and are much longer than the ads found on alternatives such as hulu (though hulu cant cross the border quite as easy).

But wait, on the internet you have potential for way more advertising, as banner ads can be constantly changing throughout streams.

So more money can be made on ads alone on the internet? If traditional free ota tv was just moved to the internet theyd make more money off of the ads alone, since apparently a single 30 second ad per commercial break is enough for hulu to get by, 3 or more should be better, plus banner ads.

Then again that would be a lot of bandwidth, but wait, if usage caps were reasonable, multicast and P2P could save the day :P, P2P taking most of the server load off of broadcast networks.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
said by d1gw33d:

People will continue to download your content at an alarming rate because you offer no viable alternative.
Define "viable alternative."
d1gw33d

join:2009-06-20
Clovis, CA

Re: Get with the times...

said by fifty nine:

said by d1gw33d:

People will continue to download your content at an alarming rate because you offer no viable alternative.
Define "viable alternative."
I think I did. Something like Hulu/Netflix would be great.
What's the minimum/realistic buy in to view HBO content? Yes its $12-15/mo in addition to what? $50-100/mo from a cable co? If they aren't "interested" in streaming as you mention in another comment then they could easily piggy back on top of the existing options like Hulu/Netflix and for another $5-10/mo on top of the Netflix/Hulu subscription you could access HBO's content.

I just don't understand a company refusing to sell directly to it's consumers save for old media (discs) 6-12 months after final episode air date.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: Get with the times...

said by d1gw33d:

I just don't understand a company refusing to sell directly to it's consumers save for old media (discs) 6-12 months after final episode air date.
Simply put, Netflix isn't a top priority for the studios. If it does become one, it won't be able to keep charging 10 bucks a month.

digitalfreak
Premium
join:2005-12-09
Blacklick, OH
Starz seems to understand this. I know their original programming (Spartacus, Pillars of the Earth) is available for streaming on Netflix the day after they air. I believe you can even stream the Starz channel live from Netflix as well.
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openbox9

join:2004-01-26
Alexandria, VA
kudos:1
said by d1gw33d:

But yes by all means attempt some model that makes zero sense to anyone except your buddies at Comcast/AT&T/Verizon.
Actually, it makes sense to HBO, not to Comcast, AT&T, or Verizon. HBO will be the one receiving the additional revenue from all current HBO/Skinemax subscribers for each negotiated deal.
d1gw33d

join:2009-06-20
Clovis, CA

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?
openbox9

join:2004-01-26
Alexandria, VA
kudos:1

Re: Get with the times...

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.
d1gw33d

join:2009-06-20
Clovis, CA

1 edit

Re: Get with the times...

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.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1
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.
tjb122982

join:2009-09-22
Terre Haute, IN

Re: Get with the times...

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.

anon234

@communitywisp.com

skinamax

Furthermore, why would I want to subscribe to online softcore porn when online hardcore is so easy to find!

Frank
is chilling
Premium
join:2000-11-03
somewhere

2 edits

They should make this like skyplayer in the UK.

sky is kind of like the hbo of the uk (they own several premium channels) except they also have a sattelite tv service similar to directv or dish network in the the u.s.

skyplayer is their online offering......

»skyplayer.sky.com/aboutskyplayer/

It is premium live and on-demand content. free if you're already currently subscribed via satellite or you can opt to pay for an online only subscription.

Unfortunatley, it's only available if you connect from the UK .

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eqshadimar
Premium
join:2004-10-20
Plano, TX

There are some uses if you already have both providers

I normally stream movies from Netflix to my notebook via wireless (wi-fi or 3G via usb dongle) when in airports and in hotels. I don't agree with how they require your ISP to signup but since I already have HBO and FiOS it may work out for me.

If they do not allow access off of the FiOS network (airport or other wf-fi network for example) then it is in fact useless since I do not need to stream movies via the internet at my house. I would just use the TV and cable box for that.

Laters,
Jeff

Bootes
Premium
join:2005-01-28
Scarsdale, NY

Re: There are some uses if you already have both providers

You don't have to be at your house. The HBO site has been available for a while now, the Cinemax site is new.

SlickEnW
Premium
join:2003-01-21
Seattle, WA

It's really, really sad.

As mentioned above, HBO would rather require users to subscribe to cable services AND their services, rather than for people who have "cut the cord" but would still like to enjoy HBO contents, and are more than willing to pay a reasonable premium for the privilege.

Sigh. Oh well. I'll just 'watch it at a friends house' gratis

fifty nine

join:2002-09-25
Sussex, NJ
kudos:1

Re: It's really, really sad.

said by SlickEnW:

As mentioned above, HBO would rather require users to subscribe to cable services AND their services, rather than for people who have "cut the cord" but would still like to enjoy HBO contents, and are more than willing to pay a reasonable premium for the privilege.

Sigh. Oh well. I'll just 'watch it at a friends house' gratis
Will you take a pay cut? Neither will cable companies.
tdouglas22

join:2001-09-25
Memphis, TN

Re: It's really, really sad.

said by fifty nine:

said by SlickEnW:

As mentioned above, HBO would rather require users to subscribe to cable services AND their services, rather than for people who have "cut the cord" but would still like to enjoy HBO contents, and are more than willing to pay a reasonable premium for the privilege.

Sigh. Oh well. I'll just 'watch it at a friends house' gratis
Will you take a pay cut? Neither will cable companies.
If they can get with the times they would not have to take a pay cut.. in fact, they might actually be able to get a raise out of it

BryanInPHX
Premium
join:2001-03-06
Phoenix, AZ
kudos:1

Just Give us HBO HD OnDemand

HBO - Just Give us HBO HD OnDemand instead of only SD versions On Demand.

BHNtechXpert
Premium
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kudos:26
Reviews:
·Clearwire Wireless

1 edit

Karl almost wets himself every time he can plug Verizon...

"Verizon is of course first out of the gate to strike a deal to offer access to the service."

Cmon Karl...gimme a break man. You make it sound like they are some visionary entity or something. Verizon is desperate to get customers (new customers aren't exactly tripping over themselves to get FiOS these days despite Verizon dumping contracts for "some" markets in case you hadn't noticed). They will pretty do anything but give the service away at this point if they think they can woo a few more people away from other providers. Yet another yawn deal right up there next to their Facebook widget.

In the meantime you might want to change your clothes... iick it's almost creepy thinking about that cozy relationship between you and Verizon....maybe you two should get a room instead of these public displays of affection.

maartena
Elmo
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Orange, CA
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What's the point?

If you can only use it with your provider - provided it is supported of course - why bother? I have HBO and HBO on Demand on my TV and I have a DVR.

The only USE I would have for a broadband video platform is when I am travelling and in a hotel, when I am at work working late (waiting for installs or server reboots to finish or what have you), or when I am visiting familiy for a while.

Why on earth would I fire up HBO on my laptop if I can fire it up on my remote?

They are SO AFRAID that we are going to do what with it? Let friends watch using the online account? Have pirates in Sweden use your account to record shows that then can be torrented? What the hell are they really so afraid of?
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