I think it's worth noting that "over-the-top" refers to any kind of service
on demand streaming, and it can still refer to "walled garden" services
that need accreditation via your cable operator. So HBOGo would already
count as an "over-the-top" service.

That said, it certainly still sounds like 3) in the list above.

But I think the price would need to be closer to $20. If you look at the
revenues that HBO makes through subscription, and their subscriber numbers,
they're currently getting something like $11.80 per subscriber per month if
my maths is correct (http://bowie.it/1yEH8cH). So that's the absolute
minimum they're going to want.

And given that the Turner division of TW *also *makes a lot of money
through cable subscriptions, TW can't afford to annoy the cable companies
*too* much. A higher price point means that cable companies can say they
offer HBO cheaper.

If it's only $10, then the 70m odd non-HBO homes that currently take cable
TV, could buy the service cheaper direct from HBO than via Comcast etc. And
you can be sure that this wouldn't make them happy.

The question then is, how many households would cancel cable TV altogether,
and just use a combination of free-to-air/Netflix/Hulu/HBO etc? Of course,
for that, you still need the internet. And that probably means going to
your cable company...



Adam (who's overly curious about this stuff)


On Thu, Oct 16, 2014 at 4:40 AM, M-D November <mdnovem...@gmail.com> wrote:

> HBO is using the phrase "over-the-top" in their PR - that's the same
> language WWE used when launching the WWE Network earlier this year at CES.
> That confirms that the online-only subscriptions will sidestep the
> cable/satellite providers entirely.
>
> Cost is the huge unknown here.  HBO will need to weigh their pricing
> against Netflix and Hulu, and while the two existing services aren't
> exactly carbon copies of HBO, potential customers will certainly make the
> comparison anyway.  (Oh, and Amazon, but not really.)  The $8-9 price point
> seems to be the sweet spot for online programming services (WWE comes in
> higher at $9.99, but they've got a niche audience).  Assuming HBOGo remains
> the same as it is now (movie library + originals immediately after first
> airing [except LWT] + library of old original series), a $9-10 price point
> might be reasonable.  But if the online subscription includes access to a
> stream of the actual channels, I could see that price going up.
>
> I guess we'll see.
>
> On Wednesday, October 15, 2014 11:55:04 AM UTC-4, Brad Beam wrote:
>>
>> As long rumored, HBO will start offering online streaming service next
>> year.
>>
>>
>>
>> How will it be distributed? Perhaps:
>>
>> (1) Through existing cable providers.
>>
>> (2) Through online providers (Amazon, Google, et al).
>>
>> (3) Directly to customers, like Netflix.
>>
>> http://insidetv.ew.com/2014/10/15/hbo-online-streaming-service/
>>
>>
>>
>> _  _
>>
>> |_>|_>  Brad Beam- Belle WV
>>
>> |_>|_>  http://www.facebook.com/74bmw
>>
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