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Re: Morning Metaverse

Jan 29, 2013, 10:40

Beamer

InBlack wrote on Jan 29, 2013, 10:32:
How to do it without underminding their business model though?? You have to remember that these guys make a shitload of money from concessions from like the US and....the Whole of the Rest of the World.

I dunno, why the fuck would anyone pay extra to get HBO cable anymore when we can just get HBO:Online?

Exactly.
And, remember, they're owned by a cable company.

HBO doesn't create content to sell content. They create content to attract subscribers. Their audience isn't the just end user, it's the cable company (not sure how they work it, perhaps it's solely the cable company.)

Of course there could be a shift there, and it's on HBO could do very easily, but they'd have to be certain that their loss of bargaining power with the cable companies, as well as the cannibalization of subscribers, would be made up for by the purchases from new users. And it's hard to predict that, but probably safe to say it's unlikely.

Plus, much like major league sports, HBO has a growing importance. As of right now cable companies are desperate for things people can only get on cable and feel the need to watch as it happens. Hulu and Netflix have really shifted how and where people get and watch content, and DVRs make advertising less successful. But sports, man, people need to watch sports live, so now sports deals are huge. And HBO doesn't have advertising so it doesn't matter, but people can only get it one place and people want to watch it to talk about it at work the next day.
This makes sports the most powerful draw to cable and gives it the best bargaining in a good deal with a cable company, and makes HBO one of the top 2 or 5 and gives them ridiculous pull as well.

As soon as they become available off of cable then suddenly they lose all that power over cable companies.




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