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 th

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.