HBO considering offering HBO GO w/o cable

[mu-rara]

I recall the oleo runs to IL in my youth with my parents smuggling contraband across the IL/WI border

My dad did that for his clients.

[ChicosBailBonds]

You would think that at some point, one of the cable network families (because no one has just one cable network anymore) goes rogue and decides to offer a la carte.  Hypothetically, let's say Viacom.

So DTV, Dish, Comcast, TW, Brighthouse, etc. start offering an a la carte option that offers any combination (or all) of Comedy Central, Logo, BET, Spike, TV Land, Nick at Nite, Nickelodeon, TeenNick, Nicktoons., Nick Jr., MTV, VH1, MTV2, Tr3s, CMT, & Palladia for - say - $6.95/mo for 1, $12.95 for any 4, $15.95 for 8, or $19.95 for all 16 -- in lieu of a full cable/sat package.  IMO, that's something that would appeal to many households with children and teens - personally, I would certainly reattach the cable for a 4-pack.  Some of the smaller networks who get a mere penny or two per subscriber now see opportunity for growth and decide to put their offerings on a la carte.  With expanded options, more and more households drop the full package for a la carte.  But there's one holdout -- the conglomerate who makes the most from per subscriber fees: The Mouse.  So Mickey and Minnie start seeing their subscriber numbers fall and are forced to either i) cut per subscriber fees or ii) start offering a la carte.  Disney and others never wanted a la carte and never would have gone a la carte voluntarily, but they ended up being forced into doing so.

That's how this goes down -- it's not a matter of changing laws, it's a matter of time before the first network figures out how to be profitable in a la carte... the rest of the dominoes will fall in time.

Let me explain why that doesn't happen.   First, it could happen, but I would expect it to be with an independent network that folks largely don't care about.

For someone like Viacom, they are generating BILLIONS of dollars from all the distributors.  If it made financial sense for them to go a la carte, they would do it in a heartbeat, but these are not stupid people. They know they wouldn't come close to making the money they are today....money needed to drive the creation of their current content.  It just isn't there.  This is simple mathematics - economics undergraduate stuff.  The math doesn't fly...not today.  Maybe some day, but not today.

And for all the lost revenue from distributors would force them to charge even more a la carte....so instead of $5.50 of your current cable or satellite bill going to ESPN, you will pay $15 or $20 for that same channel....thus pushing a lot of people on the fringe out as possible customers.

In our major Viacom dispute last Summer where we took them off the air for 8 or 9 days, we flat out told Viacom sell the channels to us a la carte so we can sell them that way to our customers.  They basically give you that option but make it so price onerous as to not make sense.  For example, you get all the Viacom channels for $1 billion a year or you can buy them individually that all add up to $2 billion. 

Apple hasn't figured it out. Intel hasn't figured it out.  Samsung hasn't figured it out.  Neither have any of the distribution companies.  It starts at the content companies, been saying that for years. 

[ZiggysFryBoy]

Like I said, we would do a la carte very easily, but the media companies make it financially impossible.

Testifying in front of Congress yesterday...one of my bosses.

http://www.latimes.com/entertainment/envelope/cotown/la-et-ct-directv-executive-blasts-broadcasters-congress-20130612,0,7516703.story

one of my bosses is on a radio commercial in Madison.

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[keefe]

one of my bosses is on a radio commercial in Madison.

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Ziggy you still schlepping schlock for Crazy TV Lenny?

[Benny B]

Let me explain why that doesn't happen.   First, it could happen, but I would expect it to be with an independent network that folks largely don't care about.

For someone like Viacom, they are generating BILLIONS of dollars from all the distributors.  If it made financial sense for them to go a la carte, they would do it in a heartbeat, but these are not stupid people. They know they wouldn't come close to making the money they are today....money needed to drive the creation of their current content.  It just isn't there.  This is simple mathematics - economics undergraduate stuff.  The math doesn't fly...not today.  Maybe some day, but not today.

And for all the lost revenue from distributors would force them to charge even more a la carte....so instead of $5.50 of your current cable or satellite bill going to ESPN, you will pay $15 or $20 for that same channel....thus pushing a lot of people on the fringe out as possible customers.

In our major Viacom dispute last Summer where we took them off the air for 8 or 9 days, we flat out told Viacom sell the channels to us a la carte so we can sell them that way to our customers.  They basically give you that option but make it so price onerous as to not make sense.  For example, you get all the Viacom channels for $1 billion a year or you can buy them individually that all add up to $2 billion. 

Apple hasn't figured it out. Intel hasn't figured it out.  Samsung hasn't figured it out.  Neither have any of the distribution companies.  It starts at the content companies, been saying that for years. 

You never read the story about The Little Engine That Could, did you?  You could be that little engine, Chicos.  Do you always want to be known as some random DirecTV employee, or do you want to be the notorious underdog who took on the giants and changed the landscape of TV as we know it?

[keefe]

You never read the story about The Little Engine That Could, did you?  You could be that little engine, Chicos.  Do you always want to be known as some random DirecTV employee, or do you want to be the notorious underdog who took on the giants and changed the landscape of TV as we know it?

[ChicosBailBonds]

You never read the story about The Little Engine That Could, did you?  You could be that little engine, Chicos.  Do you always want to be known as some random DirecTV employee, or do you want to be the notorious underdog who took on the giants and changed the landscape of TV as we know it?

Ah yes, and put 100's of thousands of people out of work in the process.  Tank quality products because the well will dry up to create anything of quality.  Drive down revenues for leagues like the Big East in the process.  What a great legacy.   At the end of the day, it's the studios and programmers that will make this call, but I doubt very much they are going to do it based on their shareholders, commitments over the next 15 years, etc.  We're happy to sell it a la carte, but if those creating it aren't offering it economically in that vein, impossible for us to do. 

[Coleman]

Ah yes, and put 100's of thousands of people out of work in the process.  Tank quality products because the well will dry up to create anything of quality.  Drive down revenues for leagues like the Big East in the process.  What a great legacy.   At the end of the day, it's the studios and programmers that will make this call, but I doubt very much they are going to do it based on their shareholders, commitments over the next 15 years, etc.  We're happy to sell it a la carte, but if those creating it aren't offering it economically in that vein, impossible for us to do. 

Just curious Chicos, you don't have to give specifics but how far up in DirecTV are you?

[keefe]

Just curious Chicos, you don't have to give specifics but how far up in DirecTV are you?

"Clean up in Aisle 5!"

[Benny B]

Ah yes, and put 100's of thousands of people out of work in the process.  Tank quality products because the well will dry up to create anything of quality.  Drive down revenues for leagues like the Big East in the process.  What a great legacy.   At the end of the day, it's the studios and programmers that will make this call, but I doubt very much they are going to do it based on their shareholders, commitments over the next 15 years, etc.  We're happy to sell it a la carte, but if those creating it aren't offering it economically in that vein, impossible for us to do. 

Would you rather be one of the "100's of thousands" without a job, or would you rather be the guy who gets to sign the $multiMM book deal for putting those people out of work?

Of course it's a rhetorical question, but feel free to search your soul.

[Chicago_inferiority_complexes]

Let's just get rid of ATM's since they cost people jobs too, right, Chicos?

Unbelievable.

[Chicago_inferiority_complexes]

BTW, I absolutely weep for the people who are making their living off America's addiction to garbage television that will go away once it is clear that the market no longer supports it. I weep tears of unfathomable sadness for them.

[ChicosBailBonds]

Let's just get rid of ATM's since they cost people jobs too, right, Chicos?

Unbelievable.

LOL.   I think you're missing the point.  ATMs are a widget, that can do the job more efficiently than a teller.  You can't just come off the street and create a machine or widget that is a writer, producer, director, actor, etc to create entertainment.  I'm talking about lost jobs because they are unique jobs, highly skilled in creativity that not every Tom, Dick and Nancy can do, but if the money isn't there to create the content they go bye bye. 

I really do think you are missing the point entirely on this because you and so many others continue to think the entertainment or sports industries are the same as creating a crankshaft or an insurance policy or what have you.  There's a reason why elite actors get paid what they do, a reason why elite writers do, why elite ball players do, because there are so few out there...people pay to watch or see their craft, and that leads to a niche industry that costs a lot of money. 

[ChicosBailBonds]

RIP to James Gandolfini...my HBO brethren are in mourning right now....or more like it, they are stunned, including Chris Albrecht (now head of Starz).

RIP

[ChicosBailBonds]

Would you rather be one of the "100's of thousands" without a job, or would you rather be the guy who gets to sign the $multiMM book deal for putting those people out of work?

Of course it's a rhetorical question, but feel free to search your soul.

I'd rather be one of the people that every day works to bring sports, news, entertainment of all kinds for your viewing pleasure on the television, phone, tablet, computer to the tune of 100's of channels daily, 24/7 at an average cost of about $3 per day.  I enjoy being one of those people that can entertain you, your wife, your kids, can help educate them, deliver the world, or just deliver stupidity (if that's what you crave) to unwind.  All at the press of a button for less than the cost of a Starbucks...every day, every hour, every minute. 

If you like sports, it's there.  You want porn, it's there.  You want religious programming, it's there.  History, education, movies, news, ethnic, music....it's there.  For a few dollars a day.  And in the process, the revenues generated flow downstream to help more content to be created, enrich my alma maters, push leading edge technologies like HD, 4K, DVRs, interactivity, etc...all to make your life and others happier.

My soul searching is done.

[keefe]

push leading edge technologies like HD, 4K, DVRs, interactivity, etc...

Virtually all electronic technical innovation is due to the military-industrial complex churning out toys for Natural Born Killers. The fact there are significant consumer applications redeems the investment of so much national treasure into an otherwise non-productive capital consuming vortex. The entertainment industry is not in the vanguard of scientific and engineering vicissitude.

[ChicosBailBonds]

Just curious Chicos, you don't have to give specifics but how far up in DirecTV are you?

As Keefe said, I just sweep the floors and read everyone's notes when they leave for the day...kind of like the janitor on Good Will Hunting.   

[ChicosBailBonds]

Virtually all electronic technical innovation is due to the military-industrial complex churning out toys for Natural Born Killers. The fact there are significant consumer applications redeems the investment of so much national treasure into an otherwise non-productive capital consuming vortex. The entertainment industry is not in the vanguard of scientific and engineering vicissitude.

Never claimed it was and I absolutely agree with you that the military creates many of the early toys that are out there...with the R&D that Uncle Sammy provides both directly and indirectly to the M.I.C., it's not a surprise.

All that being said, we (the industry) has some pretty awesome patents of our own over the years.  Some of which are on the coattails of what the military has done, and some that are unique from day one.

[keefe]

As Keefe said, I just sweep the floors and read everyone's notes when they leave for the day...kind of like the janitor on Good Will Hunting.   

Yea but the janitor was really smart, right??

Actually, you have a fun job in an important vertical in the cash cow that is DTV. Much too important for a Crean lover I should think.

[ChicosBailBonds]

Yea but the janitor was really smart, right??

Actually, you have a fun job in an important vertical in the cash cow that is DTV. Much too important for a Crean lover I should think.

Not a Crean lover, just despise the hypocrisy here and happy to point it out.

[Lennys Tap]

I'd rather be one of the people that every day works to bring sports, news, entertainment of all kinds for your viewing pleasure on the television, phone, tablet, computer to the tune of 100's of channels daily, 24/7 at an average cost of about $3 per day.  I enjoy being one of those people that can entertain you, your wife, your kids, can help educate them, deliver the world, or just deliver stupidity (if that's what you crave) to unwind.  All at the press of a button for less than the cost of a Starbucks...every day, every hour, every minute. 

If you like sports, it's there.  You want porn, it's there.  You want religious programming, it's there.  History, education, movies, news, ethnic, music....it's there.  For a few dollars a day.  And in the process, the revenues generated flow downstream to help more content to be created, enrich my alma maters, push leading edge technologies like HD, 4K, DVRs, interactivity, etc...all to make your life and others happier.

My soul searching is done.

I've seen lots of horse manure shoveled in my life, but this post is the most self serving, self important piece of garbage I've seen in a long, long time. Stunning in its arrogance.

[keefe]

I've seen lots of horse manure shoveled in my life, but this post is the most self serving, self important piece of garbage I've seen in a long, long time. Stunning in its arrogance.

Hubris. Don't forget hubris, Mr Bernstein.

[jmayer1]

I've seen lots of horse manure shoveled in my life, but this post is the most self serving, self important piece of garbage I've seen in a long, long time. Stunning in its arrogance.

Par for the course.

[Lennys Tap]

Hubris. Don't forget hubris, Mr Bernstein.

Amen, brother Keefe.

[forgetful]

LOL.   I think you're missing the point.  ATMs are a widget, that can do the job more efficiently than a teller.  You can't just come off the street and create a machine or widget that is a writer, producer, director, actor, etc to create entertainment.  I'm talking about lost jobs because they are unique jobs, highly skilled in creativity that not every Tom, Dick and Nancy can do, but if the money isn't there to create the content they go bye bye. 

I really do think you are missing the point entirely on this because you and so many others continue to think the entertainment or sports industries are the same as creating a crankshaft or an insurance policy or what have you.  There's a reason why elite actors get paid what they do, a reason why elite writers do, why elite ball players do, because there are so few out there...people pay to watch or see their craft, and that leads to a niche industry that costs a lot of money. 

I get your point here, but people are working on replacing writer's, producers, actors etc (and likely will eventually succeed as crazy as that sounds).  Also, as Spielberg recently said, the entertainment industry is broken and will see major changes.  Creativity has gone the way of the dinosaur most of the time in high-end entertainment...too much of a risk.