LOS ANGELES (AP) - HBO fired a shot across Netflix's bow this week, confirming it will no longer sell discounted DVDs of hit shows like "Boardwalk Empire" to the subscription video service.
The move by Time Warner Inc.'s pay TV channel is more antagonistic than damaging. Netflix Inc. can maintain its mail-order movie rental offerings by buying HBO discs from other sources — even retail stores. "Netflix will continue to provide HBO programming on DVD and Blu-ray discs for our members," spokesman Steve Swasey said in a statement.
Still, HBO's jab heightens the growing rivalry between the companies.
In December, Netflix CEO Reed Hastings told an investors conference that HBO's online viewing service, HBO GO, was "the competitor we fear the most." He noted that consumers with good incomes can afford to both services, but when money is tight they may be forced to choose just one.
Time Warner CEO Jeff Bewkes has belittled Netflix, telling The New York Times just over a year ago that it was like "the Albanian army going to take over the world."
HBO has consistently refused to license its hit shows to Netflix's online streaming service. The decision to also halt bulk disc sales to Netflix is intended to encourage those who want to watch HBO's shows to subscribe to HBO.
"We believe in exclusivity," HBO spokesman Jeff Cusson said.
Netflix offers online streaming of movies and TV shows for as little as $8 a month, but some content providers such as Sony Corp. have pulled movies for fear of damaging their relationships with traditional TV distributors, who offer packages of channels for $100 a month or more.
The Starz pay TV channel, which carries movies from Sony and The Walt Disney Co., has said it will pull its movies from Netflix's streaming plan in March. That move is the result of a fee dispute between the companies.
Netflix had about 23 million streaming customers as of September, while HBO has around 29 million pay TV customers.
Source: MSN
This is just such a bizarre concept to me.....
ReplyDeleteWhen more and more people and networks are moving towards streaming media over various sites, HBO steps backwards and says "Whoa! We want to stand alone"?
I get the exclusivity idea, but it seems counter-productive to me. HBO GO is a nice idea, but it is not as consumer friendly as streaming over Netflix or iTunes etc. I guess this all falls in with the theory of charging more for a bottle of wine with an exclusive label may not make the wine taste better, but people will pay more for it....
I guess this will work for a while, but I think the exclusivity of media content is becoming an outdated concept. It seems short-sighted and stubborn to me, and counter-intuitive. It seems like eventually they will have to acquiesce and become less exclusive. So why not be at the front of the line instead of at the back of the movement?
Maybe it is a brilliant ploy to swim against the current by HBO ... Time will tell I guess.
I would assume HBO's argument and thought process here would be: We have a formula that works and since exclusivity is what makes our programming "quality" we have no intention to go mainstream.
ReplyDeleteGranted I think they have earned a certain "right" to have this attitude considering it is HBO.
However I think this whole pigheadedness, though not unfounded, could in the longterm bite them in the ass. As you pointed out, it seems a short sighted, stubborn and counter intuitinve. Not to mention vain and cocky (again, not unfounded, but still....)
When you have the best shows on TV consistently and win the most awards every year (sometimes winning as many as other networks combined)... you can buck the system I guess.
ReplyDeleteLike you though, I am not sure it's a sustainable concept long term. I hope it doesn't bite them in the ass since they have had some of the best TV series ever, and have the best TV series on TV right now. Period.
Netflix is going to lose a lot of money there dvd rentals cost more a month
ReplyDeleteI just think it's weird because Netflix will just get the discs somewhere else and still release them. So strange.
ReplyDeleteOh, HBO, all those distinctions are going to your head...
ReplyDeleteI personally don't use netflix or HBO Go, I have HBO and Showtime on Demand and a Roku box and know plenty of people who can get me what I need when I need it for the latest (or older) tv shows. All my favorite shows, well I own the dvd's, most them are limited edition/collector's box sets, so to each their own.
It seems as though after the Qwikster fiasco Netflix is probably going to be more motivated than ever to keep their content from leaving and their customers happy. The Starz pull is also a big jab in the face as a lot of things I would like to see will simply not be there anymore. HBO is doing their best to keep their clients from jumping ship...if they could get all the HBO content from Netflix along with all of the other netflix content for less than they are paying HBO then they simply would not have HBO anymore if they felt it would be best to go with Netflix...
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