[opendtv] Cablefax: HBO Now: MVPDs’ Reactions
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Tue, 24 Mar 2015 23:24:52 +0000
For Craig's information, again, this article explains how the MVPDs are
responding to the threat of direct HBO sales to consumers. But the only really
relevant point on the issue of net neutrality is this:
"Most of the major pay-TV providers already have extensive digital rights
agreements with HBO, allowing their subscribers to stream the network’s live
and on-demand content across platforms. That’s why several operators are taking
more of a wait-and-see approach."
This is saying, paraphrased, "As long as we, the MVPDs, offer HBO in our own,
walled-in, TVE service, we reserve the right to keep our broadband ISP
bandwidth non-neutral. At least, we reserve that right when neutrality
conflicts with our other business model."
Now Craig. There is even a sliver of possibility that deep down, HBO doesn't
want what they claim they want. There is a sliver of possibility that HBO is
merely using this HBO Now as a threat, to get better bundle deals from the
MVPDs. That's ultimately completely irrelevant. The fact remains - the ISPs are
not neutral. And HBO is being denied the possibility of competing more
effectively against Netflix.
Bert
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http://www.cablefax.com/distribution/mvpds-unphased-hbo-now-offer-ott-options
HBO Now: MVPDs’ Reactions
By Joyce Wang | March 12, 2015
In light of the announcement this week about HBO’s standalone streaming service
HBO Now, exclusive on Apple devices starting in April, MVPDs have focused on
their own plans for OTT offerings that include HBO.
Several executives, including AT&T and Verizon CFOs, said at an investor
conference this week that more OTT-type options are positive for the industry.
And HBO said it’s looking to add more distributors and digital partners. Most
of the major pay-TV providers already have extensive digital rights agreements
with HBO, allowing their subscribers to stream the network’s live and on-demand
content across platforms. That’s why several operators are taking more of a
wait-and-see approach.
Cox, for one, said it’s talking to HBO to better understand the service. “The
overwhelming majority of our customers prefer to access video via digital cable
bundles for convenience, service quality and the unmatched value. That said,
our goal remains to provide customers the content they want on the platforms
they choose,” a Cox spokesman told us. “Clearly we have a good relationship
with HBO, we’re both highly motivated to continue to attract customers to the
cable ecosystem and we continue to discuss ways to evolve our offerings to
better meet customer needs.”
Meanwhile, Comcast is already offering an “Internet Plus” bundle with HBO
combined with other TV channels and broadband. Currently, the nationwide offer
(price might vary by region) includes Internet with speeds up to 25 Mbps plus
local channels and HBO for $39.99 per month for 12 months. The promotion ends
on March 19 and the offer is only available by ordering online. After a year,
service charge for both services increases to $64.99 a month.
Given that Comcast’s standalone “Performance Internet,” which allows video
streaming with speeds up to 25 Mbps, costs $30 and HBO Now costs $15 (although
price might be different for future distributors), Comcast’s “Internet Plus”
may be a better choice for consumers—at least for now.
DirecTV has responded to the HBO move with a promotion that includes a $50
rebate. The company is offering the rebate through a prepaid Visa card to any
customer who subscribes to the channel between now and April 15 (around HBO
Now’s launch date on Apple), as long as the subscription lasts for at least 3
months. Currently, HBO costs $17.95/month for DirecTV subs.
Prior to the HBO announcement, Verizon lowered its monthly subscription price
for HBO. Verizon is now offering HBO for $9.99 a month for the first 12 months.
The telco previously priced the network at $9.99 a month for the first six
months. The standard price is $19.99 a month after promotion ends.
- See more at:
http://www.cablefax.com/distribution/mvpds-unphased-hbo-now-offer-ott-options#sthash.tham7t8g.dpuf
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