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HBO Wants Netflix Streaming To Be More Expensive - Fears that consumer value will harm their 'premium' product


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#1 CA3LE6UY

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Posted 19 January 2011 - 05:57 AM


The last few months has seen a significant ramp up in whining among content companies, as they realize that Netflix could soon be to Internet video as Apple is to digital music. While that's actually been a great thing for content companies (and especially older catalogs of content), amidst this whining is the refrain that most content companies believe Netflix isn't charging enough money for broadband video streaming. That's been refrain of Time Warner and HBO, who've refused to allow Netflix access to HBO content. According to a report in the Hollywood Reporter, HBO would like to see the cost of Netflix streaming go from $8 to $20:

HBO believes in content exclusivity, especially for high-value content,  says Jeff Cusson, the channel s senior vp corporate affairs. "That s our rationale for not selling streaming rights to a competing subscription service." While HBO licenses shows to such pay-as-you-go streaming services as iTunes and Amazon, it has  no intention of making its content available for streaming on Netflix,  he adds. A high-placed Time Warner executive says that if Netflix expects to get a meaningful amount of HBO content, it would have to raise the price of its streaming-only service from $7.99 a month to $20 before the economics made sense.

HBO apparently believes they'll erode the perception of their "premium" service if someone is actually offering it at a decent value. Keep in mind HBO has a history of fighting the currents. Over the years they've been accused of poisoning copies of their TV shows available for download via BitTorrent, petitioned the FCC to make DVR recording of subscription video-on demand illegal, and even hinted at possibly suing Slingbox for allowing the re-transmission of their content. Now HBO is working on a walled garden Internet video service called HBO Go that's only available via three ISPs.
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#2 timinindiana

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Posted 29 September 2011 - 12:33 AM

I love my netflix.I dropped my cable tv when I got netflix.I live between bloomington and indianapolis and hooked up a new antenna to my flat screen and "whala" I get 27 over air channels(and most are high def) and with netflix and hulu I dont need HBO or cable TV.Now lets do the math.I had basic cable with about 38 channels Of course deduct local channels and that drops to about 32 channels the cost with taxes $48.00 a month.Now with antenna.netflix and hulu I get 27 channels plus two movie channels for about $15 dollars a month.I did not relize until I hooked an antenna to my TV that almost all local channels over the air have two or more side band channels and at least one movie channel such as Ant-tv and This tv that show only movies all day.Heck my kids dont care they dont watch much tv anyways..Lets Face it HBO lives in another world just look around and see how bad the job market is and the stock market makes us all nervous.Many people theses days are trimming the fat from there budgets and netflix offers a cheap way to get movies on demand to many people who otherwise may not be able to afford cable tv and internet both theses days..I think HBO is just greedy and mad because netflix offers a great product at a good price that fits into the budgets of alot of people in these trying times..Way to go netflix and HBO heres a "little cheese with ur wine"....

On a closing note
When I posed this queston to my kids "would u rather have high speed internet or cable TV" the answer was a resounding "the internet Dad".I also would rather have the internet than cable TV myself..The future is written on the wall with three words from my kids "the internet Dad"..

Tim





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