HBO Breaking Away from Cable, Satellite

[thirteen28]

This is a big domino to fall in breaking the oligopoly of cable/satellite and the whole tiered package BS. If ESPN or some other network breaks away, it will really be hard for cable/satellite to survive without offering some sort of ala carte package. Good news for us cord cutters.

http://deadline.com/2014/10/richard-plepler-time-warner-investor-day-hbo-ceo-presentation-851815/

In 2015 a standalone, over-the-top HBO Go service will launch in the the U.S, HBO Chairman and CEO Richard Plepler just confirmed, in a move that had been in the wind for some time.

There are 80 million homes that do not have HBO, and “we will use all measures to go after them,” Plepler said during his network’s portion of the Time Warner Investor Day underway in NY. He said such a move could produce hundreds of millions of dollars in additional revenue.

“There is huge opportunity in front of us… we will use all means at our disposal to go after it,” he said. “This is the most exciting inflection point domestically and internationally in the history of HBO.”

 

[Mojo Ram]

Good. Decades ago when cable and satellite hit the scene it was like having a VIP pass to television entertainment. Today it's like mandatory car registration or renters insurance. Thats my analogy and i'm sticking to it. I hope it all changes, and consumers can just pay for what they want and nothing else in a convenient, conventional manner.

"I've got 400 channels of SHIT, on the tv to choose from...choose from....choose from...choose from..."

 

[Tron]

This is great news.

 

[LesBaker]

This is the beginning of the new wave.

First newspapers, then radio and TV. The internet is the biggest game changer in the history of the world. More than the wheel, the car and everything else.

Not that I'm a genius or anything but I predicted that it would happen as soon as high speed became available and audio and video was so easy to load. You guys have heard me mention that the NFL will be online someday rather than doing Sunday Ticket. Eventually all of the programming we watch will be online. In our lifetime too.

 

[Ramhusker]

I guess they are coming after me because I don't have HBO, haven't for years. I'm happy with Netflix and my Directv package.

 

[fearsomefour]

Good. Decades ago when cable and satellite hit the scene it was like having a VIP pass to television entertainment. Today it's like mandatory car registration or renters insurance. Thats my analogy and i'm sticking to it. I hope it all changes, and consumers can just pay for what they want and nothing else in a convenient, conventional manner.

"I've got 400 channels of crap, on the tv to choose from...choose from....choose from...choose from..."

I like the concept.
However the question then becomes cost. If most channels have an ala cart option, unless you only want 4 channels it will be more expensive than a traditional package. Most people probably watch 8-12 channels. Most have to get 200-400 channels to get the ones they want. This is not by mistake. If HBO is gonna run $20/mnth as a stand alone....
I think we may see different levels of programming as well. So, a "basic" HBO comes with the huge company package-pooluza and the original HBO programming is on an elevated package or ala' cart. Again, it will have to be worked out. But, if someone has a large package for tv now and pays $150/month, they are not going to go to $30/month. These companies will figure out a way to make it profitible for them (of course).
Im just saying. We will see. But, the more options the better.

 

[fearsomefour]

This is the beginning of the new wave.

First newspapers, then radio and TV. The internet is the biggest game changer in the history of the world. More than the wheel, the car and everything else.

Not that I'm a genius or anything but I predicted that it would happen as soon as high speed became available and audio and video was so easy to load. You guys have heard me mention that the NFL will be online someday rather than doing Sunday Ticket. Eventually all of the programming we watch will be online. In our lifetime too.

I agree.
Does not mean that the consumer will pay less. It will probably mean the consumer will have more customized viewing, which is cool.

 

[LesBaker]

I like the concept.
However the question then becomes cost. If most channels have an ala cart option, unless you only want 4 channels it will be more expensive than a traditional package. Most people probably watch 8-12 channels. Most have to get 200-400 channels to get the ones they want. This is not by mistake. If HBO is gonna run $20/mnth as a stand alone....
I think we may see different levels of programming as well. So, a "basic" HBO comes with the huge company package-pooluza and the original HBO programming is on an elevated package or ala' cart. Again, it will have to be worked out. But, if someone has a large package for tv now and pays $150/month, they are not going to go to $30/month. These companies will figure out a way to make it profitible for them (of course).
Im just saying. We will see. But, the more options the better.

In the semi-long term this will mean nearly free content for viewers. The reason for that is that once it's streamed online it can be put somewhere else for people to view at no cost. Eventually there won't be any cost to the viewer/consumer because all of the cost/profit will come from advertisers.

Once something is out in the atmosphere you can get it free if you want to and they know this so eventually there won't be a cost.

 

[fearsomefour]

In the semi-long term this will mean nearly free content for viewers. The reason for that is that once it's streamed online it can be put somewhere else for people to view at no cost. Eventually there won't be any cost to the viewer/consumer because all of the cost/profit will come from advertisers.

Once something is out in the atmosphere you can get it free if you want to and they know this so eventually there won't be a cost.

Yeah true I suppose
It will be interesting to see what effect this has on content.

 

[LesBaker]

Yeah true I suppose
It will be interesting to see what effect this has on content.

Well the networks used to control all the series and specialty shows and sporting events, then cable came along and that opened things up. Now online carriers like Netflix are producing their own shows, and some are high quality/award winning.

The shift is speeding up now, HBO is just the tip of the iceberg that's coming. There are going to be more choices, much will be shit some will be good, as the universe opens. The networks and cable stations are going to have to figure out how to monetize the medium for their products.

I'm going to enjoy how this unfolds and one thing that's going to happen is that artistic censorship is about to be slayed.

 

[bomebadeeda]

Well.....they better up their game some. When we did the "line in the sand" on Direct TV to get the NFL Gameday package free....they also gave us 3 months of HBO, Max and Showtime.....and there wasn't hardly ever anything on. And I certainly wouldn't pay for it. The programming sucks.........

 

[rdlkgliders]

BEWARE!

 

[RhodyRams]

only reason I have HBO is for Game of Thrones, so I may look into other ways of watching that and cancelling HBO, SKINIMAX and whatever else comes in the entertainment package I have

 

[Elmgrovegnome]

I watch Game of Thrones on the GOT site for free. I just have to wait until the current episode airs. That site has all of the episodes all of the time so you can go back and watch whichever you like.

 

[fearsomefour]

Well the networks used to control all the series and specialty shows and sporting events, then cable came along and that opened things up. Now online carriers like Netflix are producing their own shows, and some are high quality/award winning.

The shift is speeding up now, HBO is just the tip of the iceberg that's coming. There are going to be more choices, much will be crap some will be good, as the universe opens. The networks and cable stations are going to have to figure out how to monetize the medium for their products.

I'm going to enjoy how this unfolds and one thing that's going to happen is that artistic censorship is about to be slayed.

I guess I am referencing revenue streams. If HBO (or whoever) is paid by providers to carry their channels and the provider charges consumers and advertisers the provider is getting cut out.
HBO would have to charge directly for advertising and of customer.
The production costs for original programming and series are high.
I was just wondering if change revenue structure will change what content (amount and quality) is produced.
Remember way back when HBO was new there weren't ads. There weren't ads when satalite radio rolled out. Now you pay a monthly fee and get ads.
I don't know if advertising revenue is split in any degree between providers and networks. This would seem to have a lot of bearing on things.

 

[Sum1]

This bit of news is what got me to cut the cord.

The only thing that was keeping me with DirecTV was Cardinals and Blues games...well, I'm finding ways to work around that. I might not get to watch all the games I once did, but I'll be saving $80/month. Plenty of good programming to watch thru Hulu and Netflix.

 

[LesBaker]

I guess I am referencing revenue streams. If HBO (or whoever) is paid by providers to carry their channels and the provider charges consumers and advertisers the provider is getting cut out.
HBO would have to charge directly for advertising and of customer.
The production costs for original programming and series are high.
I was just wondering if change revenue structure will change what content (amount and quality) is produced.
Remember way back when HBO was new there weren't ads. There weren't ads when satalite radio rolled out. Now you pay a monthly fee and get ads.
I don't know if advertising revenue is split in any degree between providers and networks. This would seem to have a lot of bearing on things.

I think there are many ways to skin a cat and we will see all of them as the internet becomes how content and information is disseminated.

 

[Faceplant]

I think there are many ways to skin a cat and we will see all of them as the internet becomes how content and information is disseminated.

True, but the next hurdle will be when ISP's start charging content providers for QoS and other access tweaks from a networking standpoint. Crimecast already throttles bandwidth from DirecTV servers. I can't watch a movie on VOD without letting it download for like 45 mins first, yet I have 20+Mbps download speeds. Cable holds all the cards from a network standpoint unfortunately. I expect other access technologies such as next gen LTE and WiMAX t start leveling the playing field before too long, but they will likely build in the same bandwidth throttling unless content providers pony up....or they will pass the burden on to us.

 

[thirteen28]

True, but the next hurdle will be when ISP's start charging content providers for QoS and other access tweaks from a networking standpoint. Crimecast already throttles bandwidth from DirecTV servers. I can't watch a movie on VOD without letting it download for like 45 mins first, yet I have 20+Mbps download speeds. Cable holds all the cards from a network standpoint unfortunately. I expect other access technologies such as next gen LTE and WiMAX t start leveling the playing field before too long, but they will likely build in the same bandwidth throttling unless content providers pony up....or they will pass the burden on to us.

They might for now, and in some areas, but don't expect this to last either. Google Fiber is deploying with 1 GB/s speeds here in Austin, and when they get to my neighborhood, I'm going to drop my current provider (Time Warner) like a used condom. AT&T has also deployed some GB/s internet here, and as more providers start to get into that game, the more other cities will demand it.

At this point, there is no reason the technology can't support higher download speeds, and providers are going to have a harder time justifying keeping them low, as well as throttling.

 

[thirteen28]

More on this subject:

http://www.theatlantic.com/business...e-cable-bundle-is-slowly-coming-apart/381541/

Yesterday, HBO announced a new Internet streaming service for 2015 that will let you watch shows without a cable subscription.
Today, CBS announced a new Internet streaming service that will let you watch shows (not including the NFL) without a cable subscription.

In less than a day, the most critically acclaimed network and the most watched network bet on the future of Internet TV. And just like that, the cable bundle has unraveled more in the last 24 hours than in the previous 24 months.

HBO and CBS à la carte won't blow up cable. The vast majority of older households adores pay-TV and spends four to five hours a day glued to the couch. Many families won’t want to replace a technology they know and love with a mess of streaming options they have to learn.

But younger Americans are different. They grew up with that mess of options. They love that mess of options. They actually find a mess of options easier to deal with than a cable box and a Comcast representative.

According to comScore, 24 percent of 18-to-34-year-olds don’t subscribe to pay TV. (That’s split evenly between cord-cutters—those who dropped cable—and those who never bought cable.) The pay-TV business hopes this group will sign up for cable when they get older, get married, and have kids. You can see, in the graph below, that the market for pay-TV subscribers is already overrepresented by older households (in green).
The TV Market Is Shifting Toward the Cord-Cutters

comscore
TV without cable is just getting too good. Netflix, Hulu, Amazon Prime, CBS streaming, and HBO Go-It-Alone make it tantalizing thinkable to be a television fanatic without actually paying for what we’ve historically considered “television.”

The mess of streaming options–the “mini-bundle,” or TV à la carte–might not be a better economic deal, if you think about the total value of the cable bundle. But economics is an overrated element of consumer psychology. Families don’t make decisions about entertainment by calculating the cost-per-attention-hour of their leisure time. They ask themselves simpler questions, like: “If I want to watch my favorite new TV shows—Orange Is the New Black, Game of Thrones, The Good Wife, and The Big Bang Theory—do I need the cable bundle?”

Two days ago, the answer to that question was: Yes, you need to buy the whole fruit basket. Today, the answer is: No, you can buy those channels like you can buy an apple, orange, and banana at any grocery store.

The fact that great live TV and cable are no longer synonymous makes it all but certain that more young consumers will stay off the bundle forever. It won’t kill cable overnight. Instead, it will accelerate the aging of pay-TV's business. When it comes to subscribers to the old-fashioned bundle, it is quite likely that we have officially hit Peak Cable.