[opendtv] Re: Netflix Is 6% of TV Business, 43% of Ratings Decline — Nathanson | Re/code

From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
Date: Sun, 3 May 2015 15:47:24 -0400

On Apr 29, 2015, at 9:37 PM, Manfredi, Albert E
<albert.e.manfredi@xxxxxxxxxx> wrote:

Which is exactly as I predicted, Craig. You have multiple sources competing
with the same content, just as you do in supermarkets. The sources will
differentiate themselves, to appeal to different tastes and price points, but
that does not mean that they can only compete on the basis of original
content exclusive to themselves.

The reality is that there has been this type of competition in the syndication
market for decades, by appointment. Many of the linear MVPD channels owned by
the networks are filled with their off network shows.

When you go the the grocery store you expect to see the national brands. It is
the fresh side of the grocery business - meats, produce, bakery, and
ready-to-eat - that help differentiate one chain from another. And the new
national specialty brands like Whole Foods, Fresh Market, Lucky's and Trader
Joe's tend to limit the stuff everyone carries and focus on more exclusive fare.

So it works both ways...

Why can HBO Now charge nearly twice the monthly fee as Netflix?

It is access to the large library of exclusive HBO content, and the recent
movies that Netflix lacks, that creates this extra value. Yet even with this,
HBO is starting to buy more content for HBO Now.

http://variety.com/2015/film/news/hbo-now-turner-warner-bros-apple-1201483872/

HBO Chief Downplays Binge Viewing; Says Turner, Warner Bros. Content Could Join
HBO Now

HBO CEO Richard Plepler said he was pleased with the reception the premium
channel’s new standalone service had received since launching in April, but
declined to provide any subscription data.

“We’re out of the gate fast,” Plepler said during a call with analysts
following Time Warner’s quarterly earnings announcement.

HBO, which is a division of Time Warner, is forging into the world of streaming
with the hopes of attracting 10 million to 15 million potential customers it
says are interested only in broadband video services. That argument has been
coolly received by some cable operators, however, who fear that the online-only
platform could entice subscribers to cut the cord and abandon the cable bundle
for cheaper digital offerings.

Currently, HBO Now is available via Apple TV and Apple iOS devices, as well as
through Cablevision’s Optimum Online internet service. The number of providers
could quickly grow, Plepler said, describing conversations with other cable and
satellite providers about potentially adding HBO Now to their offerings as
“highly productive.” He expects deals will be in place by the end of 2015.

Part of HBO’s pitch to cable providers is that the online service adds
customers who need access to better broadband. To that end, Plepler stressed
that so far it does not appear that the standalone service is taking customers
away from its cable offerings. “It’s an expansion of the pie,” he said.

HBO Now offers access to shows like “Game of Thrones,” “Girls” and “Veep” along
with the network’s original films and movies it hosts from studios like Fox.
That roster of programming could become more extensive, Plepler said. “We think
the HBO Now product as it currently exists is quite extraordinary,” he said,
but added he was “very flexible” about possibly adding content from its
corporate cousins Warner Bros. and Turner.

Time Warner chairman Jeff Bewkes said that the partnership with Apple has been
a fruitful one so far and predicted that the tech giant will eventually offer
its own packages of TV content.

“We think Apple is very forward-thinking about television and the combination
of TV and Internet,” said Bewkes.

HBO Now’s launch is a shot across the bow of Netflix, which has cornered the
market on edgy, online programming such as “Orange Is the New Black” and “House
of Cards.” However, the premium cable channel scoffed at suggestions it might
debut a full season’s worth of programming simultaneously in order to cater to
so-called binge viewers.

Regards

Craig

[opendtv] Re: Netflix Is 6% of TV Business, 43% of Ratings Decline — Nathanson | Re/code

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