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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 09:16AM Wednesday Jan 30 2013
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
Premium
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
Reviews:
·Time Warner Cable
·EarthLink
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:23

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:23
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

FFH5
Premium
join:2002-03-03
Tavistock 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 FFH5:

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
Premium
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 FFH5:

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 FFH5:

....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.

FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: New content looks interesting

said by JasonOD :

said by FFH5:

....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
Premium
join:2012-01-26
AA169|170
kudos:2
Reviews:
·Clear Wireless
·Cox HSI
·Verizon FiOS

1 recommendation

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 FFH5:

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
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.

•••••

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
Premium
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.

••••
Sukunai
Premium
join:2008-05-07
kudos:1
Reviews:
·ELECTRONICBOX

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.