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16. Re: Christmas Legal Briefs Dec 26, 2012, 00:03 Beamer
 
Flatline wrote on Dec 25, 2012, 23:35:
Oh please... HBO is owned by Time Warner, who is in the cable business. They have absolutely zero interest in promoting cable cutting, especially as HD cable with a standard decoder box and basic cable is going to set you back 50-60 bucks a month, and usually runs closer to 100 bucks a month. HBO is a loss leader at that point.

The premium channels drive cable subscription, which is where the money is. You'll never see HBO Go on it's own or sensible a la cart charges. That defeats the entire purpose of renting you a cable box and charging you for 400 channels you'll never watch.

Totally forgot it was owned by Time Warner.

Yeah, people always forget that businesses do things for reasons other than directly making money. It's often about indirectly making money. HBO exists, as you say, to drive subscriptions. It creates TV shows to drive subscriptions. They aren't supposed to make money on their own. Given that it's owned by TW, it likely never will be.

You see this all the time. In the eyeglass industry there are two primary companies. One is an insurance company that owns a frame business. One is a frame company that owns an insurance business. The frame company offers eye insurance to sell frames. The insurance company makes frames to sell insurance. They have completely different approaches, and each will make decisions that the other would never make because it prioritizes their core business.
 
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