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Netflix Wants to Become HBO Before HBO Can Become Netflix
CEO Wants Five New Series Added Each Year
by Karl Bode Wednesday 30-Jan-2013 tags: Video · business · alternatives · content
Speaking with GQ, Netflix CEO Reed Hastings says his company's goal is to morph into a next-generation HBO before HBO has the chance to do that themselves. Hastings has previously stated it's only a matter of time before HBO creates a standalone streaming option, but at the moment they're too enamored with the billions in subsidies they get from the cable industry to take the risk. That's just fine with Hastings, who says his goal is to create five new series each year.

"The goal," says Hastings, "is to become HBO faster than HBO can become us."

Given HBO's timid stumbling toward the natural evolutionary step of offering a stand alone streaming service, that shouldn't be too hard.

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cableties
Premium
join:2005-01-27

Didn't I call this!

They need their own content.
Too bad they don't own the pipes!
--
Splat

fifty nine

join:2002-09-25
Sussex, NJ
kudos:2

Re: Didn't I call this!

That's just too bad, aint it? And I suspect that if they did, it would cost quite a bit more than $7/month.
Kamus

join:2011-01-27
El Paso, TX

Re: Didn't I call this!

said by fifty nine:

That's just too bad, aint it? And I suspect that if they did, it would cost quite a bit more than $7/month.

Yet another guy that doesn't understand how the internet works.

It's no longer about charging a lot to few people. It's about charging little to a LOT of people because delivery of content is no longer a big deal since even a child can do it.
mogamer

join:2011-04-20
Royal Oak, MI
said by cableties:

They need their own content.
Too bad they don't own the pipes!

Very few content providers own their own pipes.
MURICA

join:2013-01-03

Re: Didn't I call this!

said by mogamer:

said by cableties:

They need their own content.
Too bad they don't own the pipes!

Very few content providers own their own pipes.

Comcast, Time Warner...
silbaco

join:2009-08-03
USA

Re: Didn't I call this!

The Time Warner media conglomerate is not the same Time Warner as Time Warner cable. Time Warner cable doesn't have much content, except maybe some sports channels.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:2

Re: Didn't I call this!

True. The trend is to spin off the cable/sat operators from the programmers.

At one time we had Time Warner, Comcast, Cablevision owning many of the channels. News Corp owned DirecTV. Now it's really only Comcast and to some extent Cablevision, and Comcast is bigger than ever.
mogamer

join:2011-04-20
Royal Oak, MI
said by MURICA:

said by mogamer:

said by cableties:

They need their own content.
Too bad they don't own the pipes!

Very few content providers own their own pipes.

Comcast, Time Warner...

I didn't say none did.
zod5000

join:2003-10-21
Victoria, BC
Reviews:
·Shaw
said by cableties:

They need their own content.
Too bad they don't own the pipes!

Here in Canada they just introduced something called Super HD. To get the newer higher quality streams, your ISP needs to make a peering arrangement with netflix (so they would have direct networks and not use internet bandwidth).

It's a mixed bag which ISPs are adopting it. Understandably a few see Netflix as a threat.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: Didn't I call this!

said by zod5000:

Here in Canada they just introduced something called Super HD. To get the newer higher quality streams, your ISP needs to make a peering arrangement with netflix (so they would have direct networks and not use internet bandwidth).

It's a mixed bag which ISPs are adopting it. Understandably a few see Netflix as a threat.

It's available here too. It was covered recently here when TW didn't like the idea very much.

It's funny watching the ISPs complain that Netflix is costing them so much bandwidth and doesn't want to pay for it, and then Netflix gives them a solution that reduces the bandwidth needs by a huge amount for free except the cost to power the device an a few slots of rack space...and the cable companies still cry foul.
Kamus

join:2011-01-27
El Paso, TX
said by cableties:

They need their own content.

»en.wikipedia.org/wiki/House_of_C···_series)

That's theirs. With the adoption rate they have all it will take is time.
elray

join:2000-12-16
Santa Monica, CA
said by cableties:

They need their own content.
Too bad they don't own the pipes!

No, they don't need their own content.
They need to pay for the content people want to watch, just as they did for the DVD library.

They don't need to own the pipes.

They just need to assure delivery rates - which, to my surprise, given Hastings tendency to whine rather than act, they manifested last week when they offered Open Connect.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:20

Re: Didn't I call this!

said by elray See ProfileThey just need to assure delivery rates - which, to my surprise, given Hastings tendency to whine rather than act, they manifested last week when they offered Open Connect.[/BQUOTE :

OpenConnect publicly launched in June 2012, at which point it was already carrying 5% of their traffic, not last week.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org

elray

join:2000-12-16
Santa Monica, CA

Re: Didn't I call this!

Let me rephrase.

When he required OpenConnect for access to "Super" HD product, in effect, co-opting the last mile.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:20
said by cableties:

Too bad they don't own the pipes!

Netflix does own the pipes via OpenConnect. They hope to eventually deliver the majority of traffic over OpenConnect.
--
Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

New content looks interesting

Reading up on the new series being released, looks like some decent content. But I wonder how long it will be before the Netflix monthly streaming fee starts increasing from $7/ mo to $10/mo and $14/mo, etc.? At which point HBO/GO will be available to anyone and not just to cable subscribers. HBO will jump in when the price point gets near $15/mo and it becomes worthwhile for HBO to cut the cable tie-in cord.
--
A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury.

kontos
xyzzy

join:2001-10-04
West Henrietta, NY

Re: New content looks interesting

said by Linklist:

HBO will jump in when the price point gets near $15/mo and it becomes worthwhile for HBO to cut the cable tie-in cord.

And by then HBO will be in the same boat Kodak was after they sat on their hands with digital cameras for years because their film business was so damn profitable.

chip89

join:2012-07-05
Independence, OH

Re: New content looks interesting

We all now how that ended up with kodak!

AnonFTW

@reliablehosting.com
said by Linklist:

Reading up on the new series being released, looks like some decent content. But I wonder how long it will be before the Netflix monthly streaming fee starts increasing from $7/ mo to $10/mo and $14/mo, etc.? At which point HBO/GO will be available to anyone and not just to cable subscribers. HBO will jump in when the price point gets near $15/mo and it becomes worthwhile for HBO to cut the cable tie-in cord.

I seriously expect HBO to jump in sooner rather than later. Although, it might not be a full-blown On-Demand offering, but more targeted. With the upcoming release of Game of Thrones Season 3, I believe we might see something.

JasonOD

@comcast.net
said by Linklist:

....HBO will jump in when the price point gets near $15/mo and it becomes worthwhile for HBO to cut the cable tie-in cord.

I think it needs to be higher, probably at least $20mo before HBO is going to be tempted. In most cable markets HBO retails for near or over $20 already.

Linklist
Premium
join:2002-03-03
Longport, NJ
kudos:5

Re: New content looks interesting

said by JasonOD :

said by Linklist:

....HBO will jump in when the price point gets near $15/mo and it becomes worthwhile for HBO to cut the cable tie-in cord.

I think it needs to be higher, probably at least $20mo before HBO is going to be tempted. In most cable markets HBO retails for near or over $20 already.

Comcast offers HBO for $10/mo for a yr to all existing customers.
--
A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury.
kaila

join:2000-10-11
Lincolnshire, IL

Re: New content looks interesting

»forums.comcast.com/t5/Channels-a···p/983403

Promo's aside, in my Comcast market it's $18mo.

fifty nine

join:2002-09-25
Sussex, NJ
kudos:2

Re: New content looks interesting

It's $16/month on DirecTV. The cable company charges $16/month and $2 on each additional TV.
turnerbrewer

join:2011-11-22
Pay $10 to Comcast for HBO and watch the whole season of Game Of Thrones via OnDemand over the weekend. Then cancel...
A friend of mine has HBO.. She lets me use her password for HBOGO .

skeechan
Ai Otsukaholic
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join:2012-01-26
AA169|170
kudos:2
Reviews:
·Cox HSI
·Clear Wireless
Cox charges $10 a piece if you get a 3 premium channel pack (eg HBO, SHO, Starz). Not too bad although there is nothing I find compelling on them any more. That died with Sopranos and Rome. Never got into Spartacus. Come to think of it, $30/mo and I never watch them. Time to call Cox.
Kamus

join:2011-01-27
El Paso, TX
said by Linklist:

But I wonder how long it will be before the Netflix monthly streaming fee starts increasing from $7/ mo to $10/mo and $14/mo, etc.?

This might happen. But you have to remember the key difference to cable service:
Canceling is just a click away, and this time around they actually have to compete because they are doing nothing special. Netflix became popular in very little time not because they are an amazing revolutionary service. They are simply taking advantage of what current technology allows. and what they can do, others will be able to do for less if they start charging too much.
Think about this: in just 5 years or so technology will allow for a much bigger number of people to be on fast connections and devices that are able to display high quality video will be ubiquitous.

morbo
Complete Your Transaction

join:2002-01-22
00000

His statement will encourage HBO to change faster

I suppose HBO already knew this, but stating it publicly will encourage HBO to move more quickly. Related comment: I don't believe Hastings is the best person to lead Netflix.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Become HBO

Netflix first you got stop showing old movies and show new releases and better quality streaming video.
MURICA

join:2013-01-03

Re: Become HBO

How about better audio? Netflix's garbage is still low bitrate lossy 2.0. Pathetic.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Re: Become HBO

Everything you want is on Youtube in HD.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
Reviews:
·Verizon FiOS
said by MURICA:

How about better audio? Netflix's garbage is still low bitrate lossy 2.0. Pathetic.

Just about everything I watch streaming from Netflix is in 5.1 DD+. I've got around 100 titles currently in my streaming queue and around 90% of them are in 5.1 DD+. It's rare for me to watch a streaming title from Netflix that is only in 2.0.

Which of course is still lossy but I would not expect them to use a lossless codec since it takes alot more bandwidth. Besides the vast majority of people would not be able to tell the difference between a lossless codec and a lossy codec in a double blind test.
Kamus

join:2011-01-27
El Paso, TX
said by MURICA:

How about better audio? Netflix's garbage is still low bitrate lossy 2.0. Pathetic.

You use an ipad for netflix? Most clients i use have 5.1 support. and it always amuses me when people whine about lossy audio. I bet you wouldn't be able to tell lossy audio (with enough bitrate) to raw one in a blind test.

MarkAW
Barry White
Premium
join:2001-08-27
Canada
kudos:16
said by brianiscool:

Netflix first you got stop showing old movies and show new releases and better quality streaming video.

I guess you didn't read the article.

quote:
That's just fine with Hastings, who says his goal is to create five new series each year. "The goal," says Hastings, "is to become HBO faster than HBO can become us."
--
We never really grow up, we only learn how to act in public.
Do not argue with an idiot. He will drag you down to his level and beat you with experience. (Hmm)
I have enemies? Good. That means I've stood up for something, sometime in my life.
silbaco

join:2009-08-03
USA

Re: Become HBO

HBO's shows cost a lot of money to produce. They take major risks no one else is going to take. There is no way Netflix will produce something like Game of Thrones, which by some estimates cost $8 million per episode.
brianiscool

join:2000-08-16
Tampa, FL
kudos:1

Re: Become HBO

Boardwalk Empire is my favorite show. The budget must be a lot lower. There are no special effects and visual enhancements in this show. It is mainly set in the 1920's.

aaronwt
Premium
join:2004-11-07
Woodbridge, VA
Reviews:
·Verizon FiOS

Re: Become HBO

said by brianiscool:

Boardwalk Empire is my favorite show. The budget must be a lot lower. There are no special effects and visual enhancements in this show. It is mainly set in the 1920's.

You aren't serious are you? Pretty much every scripted show on Tv has special effects. Whether it's to change the color of the sky, the color of clothing, to insert an object or background in the scene, or to change the look of a face.

Boardwalk empire is no exception.

Here a video that shows some of the FX on Boardwalk Empire.

»www.theverge.com/2012/1/21/27242···-digital
mike10

join:2004-03-02
there set was very expensive to build
Kamus

join:2011-01-27
El Paso, TX
said by silbaco:

HBO's shows cost a lot of money to produce. They take major risks no one else is going to take. There is no way Netflix will produce something like Game of Thrones, which by some estimates cost $8 million per episode.

That's true, GoT is expensive to make. In fact some episodes would've been worth entire movie budgets if they had the money. George RR martin did say he would take donations for those episodes. Which gives me an idea of what the future of high budget TV will be like:

Crowd-funding. Fans of the shows would no doubt support a plea for help like that one and make the show possible. It has worked for a lot of new start ups and i see no reason why it wouldn't work for cultural phenomena like some TV shows.

You have to remember all the areas that technology advancements are affecting before you worry too much, eventually all this stuff converges and makes the impossible possible.

dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ
kudos:4
said by brianiscool:

Netflix first you got stop showing old movies and show new releases and better quality streaming video.

good luck on that. even fios subs average 2500kbps on the service. netflix will have to stop the throttling crap before they can even think of becoming a hbo.
--
Despises any post with strings.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN
kudos:7

Re: Become HBO

said by dvd536:

even fios subs average 2500kbps on the service.

From Netflix regarding that number:
quote:
These ratings reflect the average performance of all Netflix streams on each ISP. The average is well below the peak performance due to many factors including home Wi-Fi, the variety of devices our members use, and the variety of encodes we use to deliver the TV shows and movies we carry. Those factors cancel out when comparing across ISPs, so these relative rankings are a good indicator of the consistent performance typically experienced across all users on an ISP network and a great way to see which ISPs offer the best Netflix experience.
The 2500kbps isn't what the ISP throttles the stream to, or otherwise support. It's what the stream needs across all their streams, and then what the connection can support.

Pirate515
Premium
join:2001-01-22
Brooklyn, NY
said by dvd536:

Netflix will have to stop the throttling crap before they can even think of becoming HBO.

While you are right on that one; sadly, it's not up to Netflix, it 's up to ISP's. Given how quite a few ISP's are also in the TV business, if Netflix becomes popular enough for people to start canceling their paid TV subscriptions, ISP's will try to make up for loss of revenue by introducing/lowering caps and/or raising prices Internet prices/overage fees.
--
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A MESSAGE to the RIAA and the MPAA: You shouldn't wound what you can't kill...
silbaco

join:2009-08-03
USA

HBO

I don't think HBO wants to become Netflix.
Kamus

join:2011-01-27
El Paso, TX

Re: HBO

said by silbaco:

I don't think HBO wants to become Netflix.

They don't, and i think that will be their undoing.
jjeffeory

join:2002-12-04
USA

Excited

I must admit that I'm a little excited. I want a grand scifi show set in space or in the future though... Just something fun and along the lines of shows like Stargate, BSG, Star Trek, Space AAB, Space:1999, Babylon 5, or even Firefly but for today's sophisticated tastes and expectations.

ShadowMastr
Master Of All Shadows

join:2001-09-01
Fort Pierce, FL

Re: Excited

said by jjeffeory:

I must admit that I'm a little excited. I want a grand scifi show set in space or in the future though... Just something fun and along the lines of shows like Stargate, BSG, Star Trek, Space AAB, Space:1999, Babylon 5, or even Firefly but for today's sophisticated tastes and expectations.

I'm with ya on that score. Good scifi isn't easy to find anymore.....

I do have to take an exception to the comment about 'today's sophisticated tastes and expectations' however.

Have you cruised thru the guide on cable lately?? It's all rednecks, honey boo boos, Kardasians, pawn shops and blank wars, (ie storage wars parking wars, shipping wars, etc).

If that's what's considered sophisticated today.... then we are in big trouble....
--
Follow Your Bliss -- Joseph Cambell
I reject your Reality and substitute my own! -- Adam Savage, Mythbuster
jjeffeory

join:2002-12-04
USA

Re: Excited

I hear ya; I was trying to be positive about today's tastes. When you put into context with Honey Boo Boo, it sounds bad! I meant sophisticated "Sci-Fi", with "better" stories and special effects. Ugh, I know what you're saying though...

Gitrdun

@acsalaska.net
This was already attempted with shows like Stargate Universe, Terminator the Sarah Connor Chronicles, and Charlie Jade.

Stargate Universe
»www.imdb.com/title/tt1286039/

Terminator: The Sarah Connor Chronicles
»www.imdb.com/title/tt0851851/

Charlie Jade
»www.imdb.com/title/tt0408378/

All of these television properties showed promise, but failed to retain viewer-ship (by Nielsen ratings). SGU and TSCC both started to reach their stride late into their second season yet were canceled. Netflix could bring back one of these shows, but would have difficulty reviving either property due to actor's scheduling conflicts (Robert Carlyle is committed to Once Upon a Time, Lena Headey is committed to Game of Thrones).

On the other hand Charlie Jade saw a number of production issues with the replacement of their writing team early after the first few episodes and got much better toward the end. You might even see quite a number of similarities and liberties taken by JJ Abrams series Fringe lifting ideas from Charlie Jade. Sadly this show was canceled after one season in Canada and SyFy moved the show to 3am timeslot after the first episode(s).
jjeffeory

join:2002-12-04
USA

Re: Excited

I know about all these shows besides Charlie Jade as I watched them and was pretty sad when they went off the air. Sarah Connor Chronicles was getting interesting ( to me) and I was starting to get into SG:U more after they started introducing some alien conflict into the mix. A writer's strike partially killed that show and they waited too long to add alien conflict into the mix. The problem is that studios don't give sci-fi shows enough of a chance to find their legs before axing them. Netflix may be a good place for these shows. Thanks for coments though! I'll have to see if Charlie Jade is any good.
Sukunai
Premium
join:2008-05-07
kudos:1
Reviews:
·ELECTRONICBOX
·TekSavvy DSL

It's easy to like Netflix when I think of my old cable bills

People LIKE to complain, but the brutal truth is, cable = massive cost for shit THEY tell you you will watch and WHEN you will watch it.

Piss off cable.

If I want to watch an old TV series ep after ep all day long, I damn well will.

If the guys want to watch crap from the Asylum and gorge on popcorn, we can.

I don't mind documentaries, and yes some of them don't deserve the term documentary, but, I have enough brains to know when I am watching obvious garbage.

Netflix has given us a great option.

Now I never have a problem with fair competition.

If HBO wants in on the deal, they have to offer it at 8 bucks and at least as much stuff, or they can keep their few new movies and cram them.

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