Red Storm
Lifer
- Oct 2, 2005
- 14,233
- 234
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Its clear online is viable distribution method, but its more complex than that. I don't think cable companies are directly paying HBO, but there are complex bundling deals going on with all the other channels that time-warner owns. Im not sure that broadband it pervasive enough in the US that they can risk the revenue from those other streams by angering cable companies.
Apparently both netflix and amamzon are trying to start original shows that will be online only. It'll be interesting to see how those take off, as it'll be a far closer model for how something like HBO, SHO, etc can make a move to exclusively digital distribution.
No I'm pretty sure they do pay HBO, and they also handle the billing and customer service and all that so HBO doesn't have to worry about paying for those jobs or doing that work. As a consumer there's no doubt what I would do, but as the head of HBO, there's no reason for them to jump off their money making machine right now, especially since it's easy money. They know they can switch over to a Netflix type model when the need arises. They are making bank on the rise of people who rely on internet and cut the cable cord, they're just making it from the cable companies and not us consumers.
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