Ouch!
01-07-2013, 01:57 PM
Relevant article. (http://techcrunch.com/2013/01/06/hbo-inks-exclusive-deal-with-universal-to-keep-content-out-of-netflixs-hands/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Techcrunch+%28TechCrunch%29&utm_content=Google+Reader)
So HBO and Universal signed a deal that keeps all of Universal's content exclusive to them. This means that movies released by Universal will not be available on other content services, notably Netflix or Hulu+. What's a greater concern is that this deal is for ten freaking years, which seems to me like financial suicide in a market changing as rapidly as it is now.
I'm not sure what either HBO or Universal (especially Universal) expect to gain from this. HBO does not offer an unbundled streaming service outside of Europe (which doesn't offer HD streams anyway, and is prohibitively expensive). The only option is to upgrade your entire cable service. The only problem is that the reason that services like Netflix and Hulu+ are so successful is because people are beginning to move away from cable. This comic from The Oatmeal (http://theoatmeal.com/comics/game_of_thrones), as others at Reddit have pointed out, is particularly relevant.
I do not understand what either company (or any of the other companies signing similar deals with HBO) stands to gain by making their content more difficult to consume. I understand that the old model that they're desperately trying to hold onto is stunningly lucrative, but consumers aren't going to put up with it when their competition is offering improved alternatives. And if I really want to watch HBO-exclusive content, and they're not going to make it easy for me to pay for it at a reasonable price, I'm going to pirate it.
Thoughts?
So HBO and Universal signed a deal that keeps all of Universal's content exclusive to them. This means that movies released by Universal will not be available on other content services, notably Netflix or Hulu+. What's a greater concern is that this deal is for ten freaking years, which seems to me like financial suicide in a market changing as rapidly as it is now.
I'm not sure what either HBO or Universal (especially Universal) expect to gain from this. HBO does not offer an unbundled streaming service outside of Europe (which doesn't offer HD streams anyway, and is prohibitively expensive). The only option is to upgrade your entire cable service. The only problem is that the reason that services like Netflix and Hulu+ are so successful is because people are beginning to move away from cable. This comic from The Oatmeal (http://theoatmeal.com/comics/game_of_thrones), as others at Reddit have pointed out, is particularly relevant.
I do not understand what either company (or any of the other companies signing similar deals with HBO) stands to gain by making their content more difficult to consume. I understand that the old model that they're desperately trying to hold onto is stunningly lucrative, but consumers aren't going to put up with it when their competition is offering improved alternatives. And if I really want to watch HBO-exclusive content, and they're not going to make it easy for me to pay for it at a reasonable price, I'm going to pirate it.
Thoughts?