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Old 11-17-2012, 06:45 PM  
Sly
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Join Date: Sep 2004
Location: Austin, TX
Posts: 31,373
Quote:
Originally Posted by crockett View Post
You are missing the concept here.. When you get HBO from a cable provider, it usually cost about $5/month. They could bring that same model to the web and sell directly bypassing cable companies and also gain a a worldwide marketplace creating an enormous amount of new customers..

I'm not saying they would offer the same product as netflix or Hulu, but directly sell their product to consumers on the web.
I'm not missing the concept at all. I'm telling you this concept already exists in many facets, and it is not working. It is failing.

Let's just say for a minute that HBO was going to do exactly what you want. The cable companies would cut them out of the picture, because the cable companies need programming like HBO. Not only that, the movie studios would come along and do the same thing. Those movies would then go up for auction across the complete Internet spectrum and HBO would lose the contracts because they would not have the volume to beat other guys like Netflix and Walmart due to their now low subscription count.

HBO has over 20 million TV subscribers. Netflix has 28 million subscribers. There is no way HBO would be able to make up the difference by losing their TV audience after cable companies and studios cut them out of the picture. HBO would be dead.
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