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> What you don't want to do is to pursue a distribution channel over here [ed: the internet], where you think, well, let's go around the affiliate and we'll get
by rflrob 14y ago
> What you don't want to do is to pursue a distribution channel over here [ed: the internet], where you think, well, let's go around the affiliate and we'll get a couple hundred thousand subs. But the promotional, and packaging support we get over here [ed: the affiliate networks], which, by the way, is the foundation of our 30 million subs
I'll believe they've done the market research to believe that "couple hundred thousand" number, but I have a harder time seeing that offering their own, independently subscribable[1] distribution channel will affect their core business model much more than piracy already is. From my perspective, they're just leaving money on the table for no clear gain.
[1]bear in mind that it's only whether or not you can subscribe to HBOgo independently of owning a tv and basic cable subscription that should be the issue, since they clearly believe offering streaming is good for both them and their customers.
- dasil003 14y agoDid you not read about the benefits the affiliate is bringing? HBO is good enough to sell cable subscriptions. There's a symbiotic relationship there. Assuming that they profit per subscriber is the same either way, what you're trying to argue is that there is not a single person who would cut their cable in favor of an official HBO streaming service who hasn't already done so in favor of piracy. Well either that or you think they'll reclaim a lot of revenue from pirates, but that still screws the affiliate which has a significant downside that you're not accounting for.