Netflix exec: HBO would have more customers thru online-only subscriptions(gigaom.com)
gigaom.com
Netflix exec: HBO would have more customers thru online-only subscriptions
http://gigaom.com/2013/09/25/netflix-exec-hbo-would-have-many-more-customers-if-it-sold-online-only-subscriptions/
1 comments
HBO is sort of foolish, in some of the statements their head has made. They really don't get this internet thing and still think it's going to be a passing fad.
For now it's fine of course, but it sounds like they want to be dragged kicking and screaming into new distribution. Instead of being a leader and putting themselves into a powerful position (they already create incredible content)
For now it's fine of course, but it sounds like they want to be dragged kicking and screaming into new distribution. Instead of being a leader and putting themselves into a powerful position (they already create incredible content)
HBO is perfectly aware of the potential value of a digital subscription model. They already have a very usable app in place for users to access their content. However, it would be incredibly foolish for them to head into that now. It would not put them in a powerful position. They would just lose millions.
The cable system is still entrenched. They gain tons of customers through cable providers. If they were to abandon that model... do you really believe all of those who were subscribing to HBO / premium channels would switch over to HBO as a digital subscriber? Of course not. Sure, many would switch but they would lose a lot of customers. Would they gain back customers whom didn't opt in to the cable provider method but would opt in for digital subscription? I'm sure this would happen. But it likely wouldn't overcome the loss of cable provider subscriptions.
HBO has consistently stayed ahead of the curve and been very innovative. They will switch when the time is right and not any sooner. They sure as hell will not need to be "dragged kicking and screaming."
The cable system is still entrenched. They gain tons of customers through cable providers. If they were to abandon that model... do you really believe all of those who were subscribing to HBO / premium channels would switch over to HBO as a digital subscriber? Of course not. Sure, many would switch but they would lose a lot of customers. Would they gain back customers whom didn't opt in to the cable provider method but would opt in for digital subscription? I'm sure this would happen. But it likely wouldn't overcome the loss of cable provider subscriptions.
HBO has consistently stayed ahead of the curve and been very innovative. They will switch when the time is right and not any sooner. They sure as hell will not need to be "dragged kicking and screaming."
The other important thing to remember is all of the advertising and sales the cable providers give. Its a racket they're all in together and its still working well for them.