I don't know about the veracity of this report, but note to television studios and networks: like millions of other "cable cutters", I will never, ever have a cable or satellite subscription again. If you want to deliver your shows to me, you need to find a way to do it over a (net-neutrality respecting) Internet connection, otherwise I'll just find something else to watch. Period.
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- I dropped down to basic cable with just the local channels, and I don't miss it a bit. Now I watch Hulu or Netflix, but I'm not about to get cable again just to watch some show on Hulu. After the big Netflix raise rates/split company failure - I'm surprised anyone would try this.May 1, 2012
- I think the real experiment would be if HBO Go stopped requiring a cable subscription to HBO itself. I would be really curious to see what would happen if they offered upwards of $15/month Go-only subscriptions. I mean they already charge $16/month on DirecTV and I bet they take a cut of that. Imagine if HBO took all of it? How is this not a no-brainer to them?May 1, 2012
- I feel the same way, but I'm guessing they have a rat's nest of outstanding contracts with cable providers requiring exclusive arrangements (likely geographically segmented, or something like that). I'm guessing the Comcasts of the world would be quite unhappy if they were no longer the only way to get new HBO dramas, especially in markets where they're effectively monopoly cable providers.May 1, 2012
- My guess is that they would fear backlash from the cable and satellite companies. They are reliant on the promotion of their channel through the catalog of offered channels. If they were to get cut off from that, their market would greatly diminish.
Personally, I think they have enough brand power that consumers would complain if they lost HBO on their cable offerings, but I'm not in a position to be advising anyone on the matter.May 1, 2012
- , nope--I actually grew up in a home without a television of any kind, and by the time I was able to decide whether to get cable or satellite, the internet was starting to heat up with various video services, so I never bothered. (And possibly that kind of childhood made me more annoyed by commercials as an adult?)
In any case, I just consider ads plus paying to be a case of the company double-dipping: I'm paying to watch, and ad companies are paying them to have me watch. If the companies behind Hulu had started Netflix, no doubt ads would be a considerable part of the Netflix model--because the Hulu companies don't seem to want to give up their double-dipping, so they're desperately trying to keep the getting-paid-twice system. Despite Netflix's issues in the past year, I'm very grateful that they haven't started incorporating ads--'cause then I'd have to start illegally downloading all my videos and that would make me feel bad :(May 1, 2012
- There is a great explanation by http://abovethecrowd.com/2010/04/28/affiliate-fees-make-the-world-go-round/of what drives these types of decisions (TL;DR summary: affiliate fees)May 2, 2012