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This guy's argument is rather unconvincing. For instance: Even if HBO wanted to offer direct-to-consumer subscriptions, there isn’t currently a payments and TV

by Bud 14y ago

This guy's argument is rather unconvincing. For instance: Even if HBO wanted to offer direct-to-consumer subscriptions, there isn’t currently a payments and TV distribution service to build on top of, that’s popular and easy enough, with the right economics for content owners. Roku? Boxee? iOS + AirPlay? Samsung Smart TV? Xbox? Please. Compared to cable, these platforms are less popular, often harder to use, more fragmented, and have complicated or unfavorable billing systems. Maybe this will change as Apple, Microsoft, and Google go deeper into the living room. But right now, cable is still the safest bet. Actually, iOS is popular enough, easy to use, has a very simple billing system in place, and is MUCH easier to use than cable. Cable may be the "safest" bet, for the meek and unimaginative, but it's no longer the best.

bradleyland 14y ago
This is a classical problem for entrenched businesses. When you become the incumbent, you bear the incumbent's burden of risk. Any major shift you make risks the substantial business you've built. This is why most large businesses don't shift, but are replaced. Dan's argument isn't that this is the "best" decision in a general sense, but attempts to point out the rationale behind HBO's firm stance against uncoupling HBO subscriptions from cable subscriptions. There is one statement in this article that really explains the whole thing. At least to me: > And its $1.2 billion in Q1 operating income represented 89% of Time Warner’s total. [record scratch] In order for HBO to walk away from what works, one would have to present a very, very compelling model for what will work in the future. I don't see anyone doing that.
jack-r-abbit 14y ago
I'm not sure I would agree that iOS is MUCH easier than cable. I have a 50" TV connected to a cable box accessible with a remote... that is pretty easy AND a pretty good viewing experience (even with some of the crappy UI in the cable box). I'm not sure what set up I would need to have in order have a comparable viewing experience using our iPad but I have a hard time believing that it would be MUCH easier (or even easier at all). To me that sounds harder and less likely to be as enjoyable. But I suppose it would probably be cheaper. So I guess different strokes for different folks.
- rictic 14y ago
  I'll give you an example. A friend was over a few days ago and wanted to watch a particular episode of Community. One quick google search and we found the name of the episode. One quick search on iTunes, a couple clicks and it's downloading. A moment later and iTunes suggests that we can start watching immediately while it finishes downloading. No worrying about when it shows, or if I'd remembered to set something to record it or even managing local storage. Also, once you've bought a tv show it looks like iTunes now lets you redownload it whenever you want. There's still some work to be done to bridge that experience onto the TV smoothly, but the experience is already much better than any cable experience for me.
  - hackinthebochs 14y ago
    When you factor in "on demand" services that most cable providers offer these days, does it still seem easier?
  - jack-r-abbit 14y ago
    > There's still some work to be done to bridge that experience onto the TV smoothly Could you expand on that? The iPad is my wife's not mine so I personally have not used iTunes for at least 5 years. Can you get the experience on the TV, just not smoothly? or are you watching it on your iPad?
- gte910h 14y ago
  You're looking at this: http://www.apple.com/appletv/ http://www.apple.com/appletv/ You click your ipad, click the video, click the little arrow going into a box, and blam, on screen Or you use the apple TV remote to select any movie or tv show in your library that you've purchased, and it will play it streaming. $99 and a HDMI cable.
  - jack-r-abbit 14y ago
    Interesting. So would that be one AppleTV for each of my 4 TVs? How does that work when you have people in different rooms wanting to watch stuff? Does AppleTV have my local news available in real time?

by Bud 14y ago

bradleyland 14y ago

This is a classical problem for entrenched businesses. When you become the incumbent, you bear the incumbent's burden of risk. Any major shift you make risks the substantial business you've built. This is why most large businesses don't shift, but are replaced. Dan's argument isn't that this is the "best" decision in a general sense, but attempts to point out the rationale behind HBO's firm stance against uncoupling HBO subscriptions from cable subscriptions. There is one statement in this article that really explains the whole thing. At least to me: > And its $1.2 billion in Q1 operating income represented 89% of Time Warner’s total. [record scratch] In order for HBO to walk away from what works, one would have to present a very, very compelling model for what will work in the future. I don't see anyone doing that.

jack-r-abbit 14y ago

I'm not sure I would agree that iOS is MUCH easier than cable. I have a 50" TV connected to a cable box accessible with a remote... that is pretty easy AND a pretty good viewing experience (even with some of the crappy UI in the cable box). I'm not sure what set up I would need to have in order have a comparable viewing experience using our iPad but I have a hard time believing that it would be MUCH easier (or even easier at all). To me that sounds harder and less likely to be as enjoyable. But I suppose it would probably be cheaper. So I guess different strokes for different folks.

rictic 14y ago
I'll give you an example. A friend was over a few days ago and wanted to watch a particular episode of Community. One quick google search and we found the name of the episode. One quick search on iTunes, a couple clicks and it's downloading. A moment later and iTunes suggests that we can start watching immediately while it finishes downloading. No worrying about when it shows, or if I'd remembered to set something to record it or even managing local storage. Also, once you've bought a tv show it looks like iTunes now lets you redownload it whenever you want. There's still some work to be done to bridge that experience onto the TV smoothly, but the experience is already much better than any cable experience for me.
- hackinthebochs 14y ago
  When you factor in "on demand" services that most cable providers offer these days, does it still seem easier?
- jack-r-abbit 14y ago
  > There's still some work to be done to bridge that experience onto the TV smoothly Could you expand on that? The iPad is my wife's not mine so I personally have not used iTunes for at least 5 years. Can you get the experience on the TV, just not smoothly? or are you watching it on your iPad?
gte910h 14y ago
You're looking at this: http://www.apple.com/appletv/ http://www.apple.com/appletv/ You click your ipad, click the video, click the little arrow going into a box, and blam, on screen Or you use the apple TV remote to select any movie or tv show in your library that you've purchased, and it will play it streaming. $99 and a HDMI cable.
- jack-r-abbit 14y ago
  Interesting. So would that be one AppleTV for each of my 4 TVs? How does that work when you have people in different rooms wanting to watch stuff? Does AppleTV have my local news available in real time?