[opendtv] Re: TV Ratings Have Hurt Creative Side of Television, Says Netflix Content Boss Sarandos | Variety

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 13 Dec 2014 02:33:14 +0000

Craig Birkmaier wrote:

> Sorry Bert, but a big reason that Netflix streaming got a foot in the
> door was VOD. HBO was a live stream service until recently, when they
> starting offering HBO Go as a TV Everywhere alternative.

No, Craig. I wouldn't keep repeating that major objection I have, concerning 
your ideas on why Netflix is popular, if that were the case. So, please check 
your facts when you see these disconnects:

------------------
http://en.wikipedia.org/wiki/HBO

HBO on Demand

HBO on Demand is the channel's subscription video-on-demand service, which 
launched as the first subscription VOD service offered by a premium channel in 
the United States on July 1, 2001 on Time Warner Cable's Columbia, South 
Carolina system.[39] It offers a selection of movies, original series and 
specials previously seen on the network. The service is provided at no 
additional cost to HBO subscribers, who already regularly pay a premium fee to 
cable and satellite providers to have access to the channel. By reducing the 
frequency in which viewers were unable to find a program they would like to 
watch, as well as limiting cancellations to the service for the same reason, 
HBO launched HBO on Demand, allowing access to the channel's programming on 
their subscribers' schedules. HBO on Demand features a rotating selection of 
films, specials and series, with select new titles added each Friday alongside 
existing program titles held over from the previous one to two weeks.

The standard definition and high definition versions of the HBO on Demand 
service are available on most cable and satellite providers, delivered to 
customers who subscribe to the linear HBO channels at no additional charge. On 
January 3, 2011, HBO became the first premium channel and the first cable 
network to offer a 3D-only VOD service as it launched a subscription video on 
demand service offering select feature films in 3D to Time Warner Cable, 
Comcast and Verizon FiOS customers who subscribe to the HBO service.
-----------------

This is UNRELATED to HBO Go. So we are talking about a timeframe when most 
users of Netflix were watching DVDs, not streaming. Netflix is simply an 
alternative to HBO, one that many people found to be a good replacement value.

> It might be a useful exercise Bert to ask yourself why the content
> congloms are making their shows so much more accessible?
>
> Could it be that there is no longer any reason to sit down and
> watch live streams by appointment?

Doubtful, since VOD or time-shifted viewing has been possible for many years. I 
already explained the reason, Craig. When people show willingness to bail out 
of MVPDs, content owners HAVE to find new delivery pipes.

> Both of these options are available now, but people are still
> using "borrowed" authentication credentials to avoid paying or
> to see shows sooner.

So, The Walking Dead is available also in an ad-supported-only site?

> And there ARE NO ALTERNATIVES for live sporting events that require
> a MVPD service or authentication.

And I explained this many times too, as did some of the CEOs we have heard 
from. Demand for live sports, baseball/basketball/US football, is basically 
inelastic. Therefore, the owners of that content can set whatever price they 
please. These guys are easy prey. They show no willingness to bail out.

Bert
 
 
 
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