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It's stupid because it is short sighted. Media companies continually try to stop new technology, like TV and VHS, because they are scared and unwilling to evolv

It's stupid because it is short sighted. Media companies continually try to stop new technology, like TV and VHS, because they are scared and unwilling to evolve. Only to find out a decade after trying to stop the technology that they are actually making more money with the new tech. A 10 year exclusive with content locked into cable or satellite subscriptions short sighted, they are trying to stop the future. A future which will ultimately cost them less, leading to more profit. Ten years is a long time; 10 years ago the iTunes store didn't exist, 14 years ago HBO had never broadcast in HD, 12 years ago the iPod didn't exist, 6 years ago the iPhone didn't exist, 6 years ago Netflix streaming didn't exist, 6 years ago Hulu didn't exist, 5 years ago Android didn't exist. Ten years from now the technology landscape and the way we consume media will be vastly different. Locking into a 10 year deal and trying to fight technology is stupid [in my opinion, because everything I say in inherently my opinion].

cremnob 14y ago
It's not short sighted. I know it has become a meme for tech geeks to paint industries like content/media as "out of touch" or "dinosaurs", but they aren't. They aren't trying to stop the future, they just want to make the most money. Right now 'the future' isn't capable of delivering that to them. But when it can, content companies will gladly be there. They aren't going to be disrupted because of these deals, which seems to be a common opinion among the tech community. To think so is to misunderstand their business and the large moat that exists around it. Your gripe (and other tech geeks') is really about middle-men, and your preferred middle-man isn't in the position to give you what you want. Some of them, like Apple, are negotiating to do just that and they may be successful if the value proposition to content companies is greater than it is now. Middle-men may disrupt other middle-men, but content companies are going to be fine.
- antoncohen 14y ago
  Ten years. For 10 years they are going to be locked into the language of that contract. Here is an example of what contracts like this get you: The NFL has an online streaming service. It's only for replays of games after they have been broadcast live on TV. Fine, ok, they signed some contacts giving TV networks exclusive live broadcast, so we can't watch live online. But then it starts to get crazy. Their online service is unavailable on Sunday and Monday nights! Huh?! Yes, some executive signed a contract giving TV networks exclusive rights to NFL broadcasts on Sunday and Monday night, so you aren't allowed to watch replays of other games on those nights. I understand the NFL makes its money with those contracts, but stupid language in those contracts prevents other revenue streams that short sighted executive can't predict. When you heard that the Olympics where going to be available on YouTube did you get excited and try to watch? Oh, you don't pay for cable? Sorry, to watch the Olympics on YouTube you had to authorize through your cable company. Why? Because the Olympics gave NBC an exclusive contract in the US. Until 2020. You won't be able to watch the Olympics streaming online without a cable or satellite subscription until 2024. Deals like that are short sighted.
mikeryan 14y ago
A 10 year exclusive with content locked into cable or satellite subscriptions short sighted, There's nothing about this deal which is short sighted. Unless you're referring to another article or details I'm not privy to but my understanding is that HBO tied up the digital distribution rights to a large supply of quality content for a long time and I'm pretty sure with minimal demands on how they distribute it (do you know otherwise?). Distribution mechanisms be damned they ensured they'd have a quality pipeline of content for a long time. To your point about locking into a cable subscription. That thing has been circled around in HN for a long time and it seems damn foolish to think HBO isn't looking to the future. There maybe a time when the number of those of you who don't have a TV start to approach the 80 million households in the US with cable, and it makes sense for them to break out of the cable distribution model, but it sure as hell isn't now at least in the US. (Note HBO is allowing HBO-Go subscriptions without cable in other countries). I'd love to hear what you think HBO's "smart" choice is because I'm pretty sure switching right now from their current model is foolish and I'm also pretty sure HBO is better prepared then just about anyone to make the leap then any other network.

cremnob 14y ago

It's not short sighted. I know it has become a meme for tech geeks to paint industries like content/media as "out of touch" or "dinosaurs", but they aren't. They aren't trying to stop the future, they just want to make the most money. Right now 'the future' isn't capable of delivering that to them. But when it can, content companies will gladly be there. They aren't going to be disrupted because of these deals, which seems to be a common opinion among the tech community. To think so is to misunderstand their business and the large moat that exists around it. Your gripe (and other tech geeks') is really about middle-men, and your preferred middle-man isn't in the position to give you what you want. Some of them, like Apple, are negotiating to do just that and they may be successful if the value proposition to content companies is greater than it is now. Middle-men may disrupt other middle-men, but content companies are going to be fine.

antoncohen 14y ago
Ten years. For 10 years they are going to be locked into the language of that contract. Here is an example of what contracts like this get you: The NFL has an online streaming service. It's only for replays of games after they have been broadcast live on TV. Fine, ok, they signed some contacts giving TV networks exclusive live broadcast, so we can't watch live online. But then it starts to get crazy. Their online service is unavailable on Sunday and Monday nights! Huh?! Yes, some executive signed a contract giving TV networks exclusive rights to NFL broadcasts on Sunday and Monday night, so you aren't allowed to watch replays of other games on those nights. I understand the NFL makes its money with those contracts, but stupid language in those contracts prevents other revenue streams that short sighted executive can't predict. When you heard that the Olympics where going to be available on YouTube did you get excited and try to watch? Oh, you don't pay for cable? Sorry, to watch the Olympics on YouTube you had to authorize through your cable company. Why? Because the Olympics gave NBC an exclusive contract in the US. Until 2020. You won't be able to watch the Olympics streaming online without a cable or satellite subscription until 2024. Deals like that are short sighted.

mikeryan 14y ago

A 10 year exclusive with content locked into cable or satellite subscriptions short sighted, There's nothing about this deal which is short sighted. Unless you're referring to another article or details I'm not privy to but my understanding is that HBO tied up the digital distribution rights to a large supply of quality content for a long time and I'm pretty sure with minimal demands on how they distribute it (do you know otherwise?). Distribution mechanisms be damned they ensured they'd have a quality pipeline of content for a long time. To your point about locking into a cable subscription. That thing has been circled around in HN for a long time and it seems damn foolish to think HBO isn't looking to the future. There maybe a time when the number of those of you who don't have a TV start to approach the 80 million households in the US with cable, and it makes sense for them to break out of the cable distribution model, but it sure as hell isn't now at least in the US. (Note HBO is allowing HBO-Go subscriptions without cable in other countries). I'd love to hear what you think HBO's "smart" choice is because I'm pretty sure switching right now from their current model is foolish and I'm also pretty sure HBO is better prepared then just about anyone to make the leap then any other network.