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>The CEO's point was it is difficult to target cable cord cutters because they have already have a business model that is profitable. The telephone salesman can
by cube13 14y ago
>The CEO's point was it is difficult to target cable cord cutters because they have already have a business model that is profitable. The telephone salesman cannot say "You can take HBO with your $50 cable or you could just buy a $10 internet subscription plan for HBO, please buy cable anyway"
I would agree with this, if HBO didn't already have the infrastructure to target cable cord cutters. If HBO had to develop their own streaming service, authentication, a pricing model, etc., then he'd have a point. It would take at least a year to get to that point, on both the technology and legal side. The argument could be made there that the investment isn't worth it, considering the current earnings.
The problem is that they have already done that. HBO Go. So it really doesn't make sense why they're not trying to get non-subscribers. I think that the fundamental problem with the HBO execs is that they've convinced themselves that the only market they should target is cable subscribers. But that market is shrinking, due mostly to services like Netflix and Hulu, especially in the demographics that they're targeting.