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Netflix is on the trajectory to becoming a monopoly, yes. HBO is hamstrung by its lucrative cable tv deals in the US, which prevents it from competing effective

Netflix is on the trajectory to becoming a monopoly, yes. HBO is hamstrung by its lucrative cable tv deals in the US, which prevents it from competing effectively with Netflix in the streaming market. They will keep making money hand over fist from cable tv until suddenly they don’t. If Netflix is Google, HBO is Yahoo. Amazon in this analogy, of course would be Bing. At a glance they seem to have what is required to compete with Netflix: Deep pockets and technological competence. But to compete in this market is for Netflix a matter of life or death, whereas for Amazon, it’s a side show. As for the multitude of smaller competitors, they are all the search engines we’ve forgotten the names of or never heard of to begin with.

pkill17 9y ago
If HBO is hamstrung by lucrative deals, then it stands to think that HBO's own deal making has prevented them from usurping Netflix. To my knowledge, I haven't heard of Netflix having overtly anti-competitive behavior but I'm all ears for examples. It seems as though HBO is capable of competing, but they have to make a risky play and get out from their cable TV bubble to do so, which is no fault of Netflix. If anything, this shows that the monolithic telecoms that have large stakes in these cable TV brands are facilitating monopolies elsewhere because likely competitors are locked into their current markets. EDIT: to be clear, HBO's unsuccessful attempt to be level with Netflix in the streaming arena is more "don't want to" and not "can't". I wouldn't call a lack of wanting to be monopolistic. If HBO suddenly turned around and wanted to compete directly with Netflix and got boxed out by Netflix in some way, i.e. Netflix striking deals with Level 3 or similar providers to prevent HBO from getting equal treatment, then there's a strong case for them being labeled a monopoly.
- adamlett 9y ago
  To my knowledge, I haven't heard of Netflix having overtly anti-competitive behavior but I'm all ears for examples. I’ not aware of any either, but one does not have to engage in anti-competitive behavior to become or be a monopoly. If anything, this shows that the monolithic telecoms that have large stakes in these cable TV brands are facilitating monopolies elsewhere because likely competitors are locked into their current markets Yes, that’s right. But like HBO, they are trapped by their business model.
morley 9y ago
> HBO is hamstrung by its lucrative cable tv deals in the US I'm not sure this is true. HBO Go is available for subscription in the US, is available on many streaming platforms. Additionally, you can subscribe to HBO through Amazon Prime (among other places; I just happen to use the Prime subscription). I can't comment on differences in marketing spend or consumer goodwill, but from my perspective, I see the same level of service between HBO and Netflix (though admittedly, Netflix is usually more stable).
stcredzero 9y ago
In this analogy, who is Duck Duck Go?
- sacheendra 9y ago
  Hulu?
jogjayr 9y ago
> HBO is hamstrung by its lucrative cable tv deals in the US, which prevents it from competing effectively with Netflix in the streaming market. HBO's library is far smaller than Netflix's (though average quality of titles is higher). Their streaming service is also objectively terrible: slow, unreliable, bad UX. On top of that it's 50% more expensive than Netflix. I'm not sure it's just the lucrative TV deals keeping them from competing with Netflix in streaming.
- euyyn 9y ago
  I remember that watching the same HBO episode via Amazon was flawless while via HBO's website it was often buffering.
jimmytucson 9y ago
> HBO is hamstrung by its lucrative cable tv deals in the US, which prevents it from competing effectively with Netflix in the streaming market. What are you basing this on? They partnered with the same company that Disney just bought to create HBO Now, their video on demand offering. It has 2 million subscribers and is another revenue source for them. The "problem" with HBO Now is that subscribership spikes when the Game of Thrones starts and plummets when the season ends. Now that the series is winding down, they need to find another one but with their history of great shows I wouldn't bet against them.

pkill17 9y ago

If HBO is hamstrung by lucrative deals, then it stands to think that HBO's own deal making has prevented them from usurping Netflix. To my knowledge, I haven't heard of Netflix having overtly anti-competitive behavior but I'm all ears for examples. It seems as though HBO is capable of competing, but they have to make a risky play and get out from their cable TV bubble to do so, which is no fault of Netflix. If anything, this shows that the monolithic telecoms that have large stakes in these cable TV brands are facilitating monopolies elsewhere because likely competitors are locked into their current markets. EDIT: to be clear, HBO's unsuccessful attempt to be level with Netflix in the streaming arena is more "don't want to" and not "can't". I wouldn't call a lack of wanting to be monopolistic. If HBO suddenly turned around and wanted to compete directly with Netflix and got boxed out by Netflix in some way, i.e. Netflix striking deals with Level 3 or similar providers to prevent HBO from getting equal treatment, then there's a strong case for them being labeled a monopoly.

adamlett 9y ago
To my knowledge, I haven't heard of Netflix having overtly anti-competitive behavior but I'm all ears for examples. I’ not aware of any either, but one does not have to engage in anti-competitive behavior to become or be a monopoly. If anything, this shows that the monolithic telecoms that have large stakes in these cable TV brands are facilitating monopolies elsewhere because likely competitors are locked into their current markets Yes, that’s right. But like HBO, they are trapped by their business model.

morley 9y ago

> HBO is hamstrung by its lucrative cable tv deals in the US I'm not sure this is true. HBO Go is available for subscription in the US, is available on many streaming platforms. Additionally, you can subscribe to HBO through Amazon Prime (among other places; I just happen to use the Prime subscription). I can't comment on differences in marketing spend or consumer goodwill, but from my perspective, I see the same level of service between HBO and Netflix (though admittedly, Netflix is usually more stable).

stcredzero 9y ago

In this analogy, who is Duck Duck Go?

sacheendra 9y ago
Hulu?

jogjayr 9y ago

> HBO is hamstrung by its lucrative cable tv deals in the US, which prevents it from competing effectively with Netflix in the streaming market. HBO's library is far smaller than Netflix's (though average quality of titles is higher). Their streaming service is also objectively terrible: slow, unreliable, bad UX. On top of that it's 50% more expensive than Netflix. I'm not sure it's just the lucrative TV deals keeping them from competing with Netflix in streaming.

euyyn 9y ago
I remember that watching the same HBO episode via Amazon was flawless while via HBO's website it was often buffering.

jimmytucson 9y ago

> HBO is hamstrung by its lucrative cable tv deals in the US, which prevents it from competing effectively with Netflix in the streaming market. What are you basing this on? They partnered with the same company that Disney just bought to create HBO Now, their video on demand offering. It has 2 million subscribers and is another revenue source for them. The "problem" with HBO Now is that subscribership spikes when the Game of Thrones starts and plummets when the season ends. Now that the series is winding down, they need to find another one but with their history of great shows I wouldn't bet against them.