[opendtv] Re: Forbes: Cut The Cord? HBO Considers Selling Direct To Better Combat Netflix
- From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
- To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
- Date: Sat, 11 Oct 2014 00:56:23 +0000
Craig Birkmaier wrote:
> Not even close to an accurate translation. Try this:
>
> HBO was conceived in a different era when MVPDs had the only viable
> pipe to deliver a premium service like HBO. We optimized for that
> model and have enjoyed incredible success ...
... ONLY because we were the only game in town (i.e. within that walled
garden). That's what I said. The MVPD is no longer the content source monopoly.
> But the ability to put vast content libraries online where subscribers
> can access this content on demand has fundamentally changed the nature
> of a premium, commercial free content subscription service.
I wonder how you don't understand that I explained that already, and that the
emphasis you place on VOD is overstated. Once again, the cable companies and
DBS offer PVRs, so no one has been forced to watch by appointment for decades.
The watching programs on demand aspect is exclusive to Internet sites.
>> So yes, Netflix does compete with HBO.
> Duhhhhhhhh!
> I've been saying this for weeks. For the service that Netflix and HBO
> offer, the advantages of a server based web subscription portal are
> enormous.
Do I need to ferret out the post where you say Netflix does NOT compete against
HBO? Did you forget how you insisted that those who get Netflix do so as an
add-on, not a replacement? That Netflix has mostly TV shows, I think you said?
Or older movies than HBO?
>> "HBO has always known the day was coming when it would have to
>> emulate its upstart rival [Netflix], ..."
>>
>> Translation: milking the old model for all it's worth.
>
> No. We must offer a comparable product to Netflix, even as we milk
> the old model for all it's worth.
That's what I said. You milk the old formula for all it's worth. It would be
really dumb not to also compete more directly, over the Internet, however.
So, finally you're coming around. It is a painful process, as usual.
Bert
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