HobeSoundDarryl
macrumors G5
HBO is going to be around $15/mo.
http://www.cnet.com/news/hbo-may-price-online-only-subscription-service-at-15-a-month/
First, note who's coming up with that price- not HBO. It's someone's guess- what looks like a blogger. Why don't you or I post here (or on a blog) that all al-a-carte channels will cost 1 cent each? Now go quote in a thread like this as if it's fact. And even if you want to give that blogger some credibility, his suggestion is that it will fail at even the same price as it's bundled into cable. His first line: "HBO’s broadband service looks doomed even before it starts." Why does he think that? Because he also thinks it has to be priced really low to work. So why does HBO want to swap about $15/month revenues for something less than $8 or $4/month revenues?
Second, note how it says "start at", so even if this apparent guess has some validity, we all know what "start at" means. iPhone 6 can "start at" $0 but that doesn't mean iPhone 6 costs nothing.
Third, getting past both of those, what that would mean to me is that they are going to roll out something much less than what we might expect relative to the HBO offering that comes with cable/satt and/or even HBO Go. If it's watered down enough, I can easily see $15 or $8 or $2 or a nickel.
My guess at a much higher price revolves around a concept of cutting the cord and pretty much replacing that cord's version of HBO. If they roll out HBO Go Jr Jr Jr for a nickel, (at least) I wouldn't see that as a solid cord-cutting alternative.
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Its going to cost the same as with cable. The reason is that HBO is totally different from CBS or ESPN. HBO doesn't have commercials, and isn't part of basic cable. People buy HBO solely for the content. The partnership with Cable gives HBO more exposure and subscribers while the cable company gets part of the profit from HBO. HBO is already al a carte within cable. They are just going to expand it outside of cable.
OK. So put yourself in their cable partner's shoes. You provide the vast majority of money that flows to HBO now. If HBO comes out at the same price that it's available within your service, it helps motivate the "cord cutter" mentality which is a strategic threat to your business. So do you just let that happen? Or do you put some pressure on HBO (again, you're giving them most of the revenue they make right now)?
Every post I make about this concept encourages people to think beyond themselves- get out of the consumer point-of-view and see it from the other player's points-of-view. You and I would love to be able to get our favorite cable TV channels for no more than what we pay within a cable bundle now. GREAT! I'd like to get everything I like for $20 or $10 or $5 or a quarter each month.
But why does the cable provider allow that to happen when that option depends on flowing through the cable provider's broadband pipes?
It will be amazing if we get a full replacement for cable's version of HBO for the exact same price as what it costs within a cable bundle now. But I just can't possibly see that happening when I put myself in Comcasts and similar shoes. Like any business- including Apple- one of their goals will be to protect their turf. In this scenario, ANY alternative that requires a broadband pipe has to flow through THEIR broadband pipe.
That said though, I'll hope right with you (both).
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