[opendtv] Re: Cost of HBO over MVPDs

  • From: Craig Birkmaier <craig@xxxxxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 12 Mar 2015 13:37:36 -0400

> On Mar 11, 2015, at 8:15 PM, Manfredi, Albert E 
> <albert.e.manfredi@xxxxxxxxxx> wrote:
> 
> Craig continues to insist that the slimmed down $50 option for HBO was 
> "always" available on MVPDs.

This is fact. 

The most basic cable package - usually analog - is about $25/mo. It was cheaper 
a few years ago. The cost for HBO varies by system between $15 and $20/mo. For 
DECADES you could buy these two services for @$50/mo or less.

HD does up the ante, as most digital cable packages include the extended basic 
bundle. This is what happened to your buddy Rococo. Add broadband - NOT 
REQUIRED TO WATCH HBO IN HD - and the price quickly goes over $100. I pay about 
$125/mo and do not get HBO. That would add $15-20 mo.

But this is not just HBO in HD and Internet. As the story you posted clearly 
indicates, Rococo also was offered "80 digital channels," including ESPN and 
the rest of the cable networks.

At the time, Rococo was probably right, although, if he knew how to complain he 
probably would have been given a deal off the unpublished price list.

In the past few years, as you have pointed out, Comcast created the perfect 
bundle for Rococo: high speed Internet, HBO and local TV channels. When it was 
introduced it was $50/mo. Now it is $39.99 for 25 Mbps/$49.99 for 50 Mbps:

http://www.comcast.com/internet-service.html

Or, for $20 more, you can get HBO in digital HD, 50 Mbps Internet, and 140 
digital channels (includes ESPN, Watch ESPN and HBO Go).

http://www.onlinecomcast.com/bundles/?cpid=43887&matchtype=b&keyword=%2Bcomcast&adposition=1t2&gclid=CPyvw8vaocQCFYNFaQodUb4A1g

The one thing Bert fails to take into consideration is just how much leverage 
the MVPDs have to get and retain customers. They have plenty of room to drop 
prices to keep customers from cutting the cord. And they draw new subscribers 
in with low. Cost bundles like the $69.99 digital cable/broadband/HBO bundle I 
linked to above.

> 
> Okay, so once again, please refer to this article. This article is from Feb 
> 2013, i.e. BEFORE the slimmed down packages were available.

See above.
> 
> http://hbowatch.com/how-much-does-an-hbo-subscription-cost-these-days/
> 
> Plenty of people complaining that they only want HBO, and have to pay a 
> bundle for it.

See above.

> The most precise post is from Rococo, who only wants HBO in HD and Internet. 
> Two years ago, he had to pay 3 times what Craig claims, after three years, 
> and twice the amount on the first year. There was no slimmed down bundle with 
> HBO, Craig.

See above.

> Since everyone commenting on that article was complaining about the same 
> thing, who do I tend to believe?


Clearly there must be some people who only want HBO, but this seems to be a 
stretch, unless they also use an antenna to get the broadcast networks.

It is also clear that Comcast "required" subscribers to take the digital 
extended basic tier if they wanted to get HBO in HD. The fact that Rococo 
wanted Internet service has nothing to do with getting HBO in HD per se; the 
linear HBO HD channels are part of the digital cable service.

Ironically, the new $39.99 bundle from Comcast is adequate to download shows in 
HD from HBO Go, which is part of the bundle.

None of this changes the fact that it has been possible to get analog basic 
cable and HBO for less than $50 for decades.

Regards
Craig 
 
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