[opendtv] Re: NYT: Unraveling the Cable Bundle
- From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 6 Dec 2014 10:06:59 -0500
On Dec 5, 2014, at 9:33 PM, Manfredi, Albert E <albert.e.manfredi@xxxxxxxxxx>
wrote:
>
> For the 1500th time: HBO was also available VOD inside garden walls, using
> the proprietary MVPD VOD service.
For the 1501th time Bert. HBO will continue to be available both as live
streams and via HBO Go inside those walls. But that market has peaked and they
are seeing increased competition from Netflix and other VOD bundles.
They have no choice but to move to OTT VOD, because it provides a superior
service. They have chosen to work WITH the MVPDs to offer this to cord cutters
as an option for broadband subscribers, as their MAIN competitor is an OTT
service.
> Please acknowledge that your read and understood this point. The VOD aspect
> is not unique.
Correct, it is critical to their survival.
> What is unique is offering content direct to consumer, outside any MVPD
> bundle/tier model.
That's how HBO started (via satellite). It is not unique. Netflix does it. So
they are working with the MVPDs to provide options to grow their subscriber
base, while milking the old business model.
>
> And yet, if you can see the in-between solution, where you don't suddenly
> ditch the MVPD model, but you create parallel distribution pipes, pipes AMC
> did just that with The Walking Dead! HBO is doing just that too! So is CBS!
> "Pure speculation"? That's funny.
Apples and oranges Bert. The AMC business model is as old as the industry. Use
first run content to drive ratings and attract lucrative live audiences; then
license this content to maximize long term revenues.
Regards
Craig
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