[opendtv] Re: Cablevision to offer HBO Now streaming service - MarketWatch

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Sat, 21 Mar 2015 08:49:05 -0400

> On Mar 18, 2015, at 7:55 PM, Manfredi, Albert E 
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> 
> Craig wrote:
> 
>> Whether any MVPD decides to sell HBO subscriptions or not has
>> nothing to do with net neutrality.
> 
>> Do you think MVPDs that sell broadband will block the bits
> 
> Aaargh. YES! Read the article again. Cablevision is the first to agree to HBO 
> direct. The others are dragging their feet, because this HBO direct 
> cannibalizes their MVPD tier. How didn't you get that? Net neutrality means 
> that no (legal, legitimate) source of content can be denied access on the ISP 
> net, Craig.

That is a business decision Bert. They are not blocking ANYTHING.

If you want HBO Now when it launches in April, you will be able to get it from 
Apple via ANY MVPD broadband service. Until then, and after, you can subscribe 
to the MVPD streaming HBO channels from any MVPD system, and watch HBO Go via 
the Internet.

This is mostly semantics, in terms of the subscriber, as the cost is 
essentially the same. No doubt you will throw in the canard that the MVPDs will 
require a subscription to a video bundle, but that is now going away - Comcast 
provides broadband, HBO and local TV stations for $39.99/mo. By April many 
other MVPDs are likely to join Cablevision in offering HBO Now. 

But this is not semantics to the MVPDs. It is a cut in pay. 

HBO will get 70% of the $15.99/mo subscriber fee - the MVPD will get 30% rather 
than 50%. And in some cases the subscriber may drop the streaming video bundle, 
which would be a much larger economic hit. But keep in mind, less than 30% of 
MVPD  home subscribe to HBO; there is nothing about HBO Now that is likely to 
change this, as it is still an expensive add on. HBO Now is targeted at people 
who have already cut the cord, which is still a very small market - 15-20 
million homes, coated to more than 100 million MVPD homes.

> Read this:
> 
> "... signaling HBO's first success in convincing a longtime partner that its 
> new service won't be cannibalistic."
> 
> With net neutrality, once it becomes law, HBO would have no reason to cajole 
> like this, Craig. Cannibalistic or not, HBO is the owner of content, and HBO 
> can decide how to peddle its wares on the Internet. The ISP portion of the 
> MVPD net is the *neutral* pipe, with no way to deny the HBO direct content, 
> no matter how this might conflict with their MVPD HBO tier.

What rubbish. Nobody is denying anyone anything. HBO has used the leverage of 
OTT Internet distribution to get a better cut of the subscriber fee, nothing 
more. Net Neutrality has nothing to do with it; nobody is blocking anyone now. 
At worst, there have been some incidents with Netflix of data rate throttling 
based on peering agreements. 
> 
>> HBO had no choice but to move from streaming to VOD,
> 
> Wow. This again. HBO has been offering VOD for the past 14 years, Craig, 
> without any Internet involvement.

HBO VOD services JUST became available from Cox cable last month. Your mileage 
may vary. 
> 
>> Kudos to Apple.
> 
> For what? Trying to balkanize the Internet? Congratulations. We'll all be the 
> better for it.

For having the customer base to get the 90 day non MVPD exclusive for HBO Now. 
They earned this by helping HBO make a ton of money over the past decade 
selling HBO content through the ITunes Store.


What Balkanization?

You could buy content from iTunes too Bert...

If you were willing to pay for it.

Regards
Craig 
 
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