HBO considering offering HBO GO w/o cable

[Chicago_inferiority_complexes]

Got myself a Roku and $8.99 Netflix for Christmas. I could spend every waking hour of the day watching content just from Netflix.

Enjoy those cable (satellite, whatever) bills, kids.

[Benny B]

Got myself a Roku and $8.99 Netflix for Christmas. I could spend every waking hour of the day watching content just from Netflix.

Enjoy those cable (satellite, whatever) bills, kids.

Actually, the kids are the ones cutting the cord. The only age cohort that's mostly still paying for cable/satellite are technologically illiterate adults through semi-senile boomers.

[Chicago_inferiority_complexes]

Actually, the kids are the ones cutting the cord. The only age cohort that's mostly still paying for cable/satellite are technologically illiterate adults through semi-senile boomers.

True. As someone closer to being a kid than a boomer, I agree.

I just cannot imagine paying the triple figures that people on here and people I know pay for cable. All for what, so they can rent movies for an additional fee? I can rent movies through multiple services on the Roku.

I was back at my parents' over the holidays. A dozen channels on Alaska and another dozen channels on home improvement. What a waste. Why do people spend their few moments on the planet watching this stuff?

[Hards Alumni]

Cable bill just went up to $175 with internet.

Gotta love that even when the meteors are striking all around, some dinosaurs can't see the extinction coming.

[Lennys Tap]

Honest question: where do I watch my Marquette Warriors and other sporting events if not on cable or satellite?

[Canned Goods n Ammo]

Nope, ESPN is not offering a la carte option to just purchase ESPN.  Disney is requiring you to take multiple channels which they forced on DISH (which they tried to force on DIRECTV), thus it is NOT a la carte.  Your statement is just plain false.  You MUST take ESPN, ESPN2, Disney Channel and ABC Family.  That is NOT a la carte.  You also MUST take some Scripps and Turner channels.  That is not a la carte.

Yes, it is a legit option, no one said it wasn't.  We agree.

We've done many calculations on how many people would take just ESPN at $15, $20, $25, $30.  We believe there is a market for it.  It will gain some traction, no doubt about it.  Here's where it gets interesting, however, in many cases it can hurt those conglomerates, which is why they put a cap on it.  If a bunch of people bail on pay tv to buy this product and DISNEY is no longer being paid on Disney XD, Disney Junior as they would a MVPD, then that's an issue for them.

Same goes for HBO.  Time Warner may hit a home run with OTT HBO, then again, it could mean their CNN, TNT, TBS, etc properties get crushed in the process.  Many smart people working on this, they aren't going to kill their golden goose.

I've been working as counter to this product for the last 7 months....we've been all over it with my new gig.  Today's article how this isn't a game changer is pretty interesting and what we have also been saying.  We believe there is a market, no doubt, but not a game changer in its current state.  It's not even an OTT product really. It's a PSN, which I have my own biases against for many reasons, but we'll see how those work.

http://variety.com/2015/digital/news/why-dishs-sling-tv-skinny-internet-bundle-isnt-a-game-changer-1201392269/?utm_source=sailthru&utm_medium=email&utm_campaign=dailyheadlines

Also interesting about a Forbes and Motley Fool article the past week about what was actually a game changer....       

http://www.forbes.com/sites/greatspeculations/2014/12/26/directv-launches-over-the-top-streaming-service-for-u-s-hispanic-consumers/

http://www.fool.com/investing/general/2015/01/03/directv-just-went-over-the-top-of-cable-companies.aspx

The first cell phone didn't put land lines out of business.
The first news blog didn't put newspapers out of business.
The first car didn't eliminate the need for horses and trains.
The first laptop didn't eliminate the need for desktop computers.
Tesla didn't eliminate Ford.
The first MP3 didn't eliminate CDs.

There is an evolution to these things. ESPN being available in a smaller bundle isn't going to be the magic bullet or a game changer.

However, consumer demand is changing. A growing portion of the population may never subscribe to a traditional cable provider in their lifetime.

Cable isn't going to magically go away, but the consumption model is changing. Companies will adapt, or die.

[brandx]

The first cell phone didn't put land lines out of business.
The first news blog didn't put newspapers out of business.
The first car didn't eliminate the need for horses and trains.
The first laptop didn't eliminate the need for desktop computers.
Tesla didn't eliminate Ford.
The first MP3 didn't eliminate CDs.

There is an evolution to these things. ESPN being available in a smaller bundle isn't going to be the magic bullet or a game changer.

However, consumer demand is changing. A growing portion of the population may never subscribe to a traditional cable provider in their lifetime.

Cable isn't going to magically go away, but the consumption model is changing. Companies will adapt, or die.

Bingo!

What Chicos can't comprehend, for whatever reason, is that these things work in degrees. This is a start - not a final solution.

Luckily, these execs are much smarter than he is. They don't want to change, but know that they must. Networks used to have all of the creative content. Then, after cable advanced a bit, the cable networks grabbed a share. Then with the advent of the iPhone the vice tightened a little more on the networks. And because of mobile computing they are losing still more.

Now, the cable networks are starting to lose some ground. They slowed the tide by selling to Netflix, Hulu, etc., but the progress will not stop.

And the overall cable numbers that chicos likes to quote don't matter. The numbers that matter are the people under 35. Because that is the future. They are NOT going to embrace mobile computing while young and then go back to the older model as they age.

[brandx]

Honest question: where do I watch my Marquette Warriors and other sporting events if not on cable or satellite?

Once Fox Sports go the route that ESPN is now going, then cable will be gone for me. I have cable strictly for sports.

[Lennys Tap]

The first cell phone didn't put land lines out of business.
The first news blog didn't put newspapers out of business.
The first car didn't eliminate the need for horses and trains.
The first laptop didn't eliminate the need for desktop computers.
Tesla didn't eliminate Ford.
The first MP3 didn't eliminate CDs.

There is an evolution to these things. ESPN being available in a smaller bundle isn't going to be the magic bullet or a game changer.

However, consumer demand is changing. A growing portion of the population may never subscribe to a traditional cable provider in their lifetime.

Cable isn't going to magically go away, but the consumption model is changing. Companies will adapt, or die.

And Amazon didn't (totally) put Barnes and Noble out of business - just moved them towards irrelevance. As an aging boomer I like the feel of a book or newspaper in my hands but the kindle and online news reports have won me over - much more bang for the buck.

[Canned Goods n Ammo]

Once Fox Sports go the route that ESPN is now going, then cable will be gone for me. I have cable strictly for sports.

To be fair, I think this is what Chico's and the cable companies are counting on.

They have paid A LOT of money for sports content, so they are going to do everything they can to get you to consume that content by traditional means (to maximize revenue).

[Canned Goods n Ammo]

And Amazon didn't (totally) put Barnes and Noble out of business - just moved them towards irrelevance. As an aging boomer I like the feel of a book or newspaper in my hands but the kindle and online news reports have won me over - much more bang for the buck.

Here's one:

Do you think people under 25 know that Amazon was originally a book retailer?

That company has evolved very quickly. It's essentially just a logistics interface, and they do it very well. I use it all of the time.

[reinko]

Here's one:

Do you think people under 25 know that Amazon was originally a book retailer?

That company has evolved very quickly. It's essentially just a logistics interface, and they do it very well. I use it all of the time.

Amazon Prime is still the greatest deal known to the American consumer.

[Canned Goods n Ammo]

Amazon Prime is still the greatest deal known to the American consumer.

I ordered a new set of headphones on a Friday, and they arrived Sunday morning, for FREE. (I have prime).

It's insanely efficient. Love it.

[Coleman]

Once Fox Sports go the route that ESPN is now going, then cable will be gone for me. I have cable strictly for sports.

Same here. If MU was still on the ESPN family of networks as it was in the old Big East, I'd seriously consider this new DISH a la carte option.

[Coleman]

I ordered a new set of headphones on a Friday, and they arrived Sunday morning, for FREE. (I have prime).

It's insanely efficient. Love it.

Not to mention all of the music and video content included free with the subscription.  I have Prime, and my fiancee pays for Netflix. And we are thinking about dropping Netflix, because we hardly ever use it anymore. We have cable too. It is probably overkill. But I want my MU basketball, and I can watch just about every game on FS1/2. At least my bill is still under $100 a month. I'd never pay $175. Hards, I'd recommend you switch to a new provider or at least bitch to the retention department that you are going to leave until they cut you a deal. I am lucky that in my neighborhood of Chicago I actually have 2 cable providers, in addition to the satellite/AT&T options. I switch every few years to keep it reasonable.

[Canned Goods n Ammo]

Not to mention all of the music and video content included free with the subscription.  I have Prime, and my fiancee pays for Netflix. And we are thinking about dropping Netflix, because we hardly ever use it anymore. We have cable too. It is probably overkill. But I want my MU basketball, and I can watch just about every game on FS1/2. At least my bill is still under $100 a month. I'd never pay $175. Hards, I'd recommend you switch to a new provider or at least bitch to the retention department that you are going to leave until they cut you a deal. I am lucky that in my neighborhood of Chicago I actually have 2 cable providers, in addition to the satellite/AT&T options. I switch every few years to keep it reasonable.

Ya, the streaming music and video are great as well. I find myself using it more and more.

The user interface for those products isn't perfect (yet), but I'm sure they will improve over time.

[ChicosBailBonds]

Nope what? How is it not a la carte? Fewer channels, lower total cost...

I think everyone with half a brain recognizes you are going to pay more per channel with this type of system. But for some people, that is still worth it.

I think we all see what is coming, and it is more of this.

With all due respect.  Your definition of a la carte is unlike any I have ever seen, be it for food, tv, etc.   That's not a la carte the way you describe it.

A la carte is buying individual items rather than a bundled or part of a set (i.e. a meal).

What DISH is doing, as I stated, the industry has known about for almost a year.  Due to MFNs, they couldn't hide it.  It is a one stream service, which the media reported.  It will attract people who like stuff for free and don't want to pay very much.  The question is how much does it cannibalize existing revenue streams for the studios, and they have put in all kinds of safeguards to prevent that....all of which were not reported by the media because the media doesn't know about them or were too lazy to find out.  But eventually those will come out as well.

[ChicosBailBonds]

Actually, the kids are the ones cutting the cord. The only age cohort that's mostly still paying for cable/satellite are technologically illiterate adults through semi-senile boomers.

LOL.

Uhm...no.  The folks that pay for cable\satellite (especially satellite) on average have a college degree, make more than $100K a year and are plenty literate, both in real terms and technology terms.  Yes, there are a bunch of old farts like Lenny and others that do fit your description in terms of wanting to find other products.  But there are also many that could, but don't because they find it a pain in the rear to have 5 different services, instead of one.  They like sports, which the others don't provide.  They like having 1080P in tangible bit rates on their big screen, not 1080p on a tablet.  So on and so forth.

Secondly, kids aren't cutting the cord....they didn't sign up for it in the first place.  They are called cord nevers.  A big distinction. 

[Canned Goods n Ammo]

Secondly, kids aren't cutting the cord....they didn't sign up for it in the first place.  They are called cord nevers.  A big distinction. 

Now that's an interesting point.

Is there a recruitment strategy for DirectTV to acquire these types of customers? Obviously exclusive content is one way to do it, but if these folks are already finding enough content elsewhere, what would drive them to DirectTV?

[ChicosBailBonds]

To be fair, I think this is what Chico's and the cable companies are counting on.

They have paid A LOT of money for sports content, so they are going to do everything they can to get you to consume that content by traditional means (to maximize revenue).

Thank you for quoting him....his ignorance on this stuff remains amazing.   

You can tell he has never done anything in his life in the business world and wouldn't understand a contract or a business deal if slapped him in the head.

The sports contracts are spoken for many many many many years.  Secondly, the only way sports can survive at today's salaries, etc, is through maximum burdeoning of many people to pay for it.  I know people don't like that, but that's the way it is.  90% of the country pays for sports, even though less than 40% gives a rip about it.  If it goes to the 40% that gives a rip to be relied on to pay for it, then the costs go up 2.5X if not more.  Because guess what, the players and the leagues have learned that the fans gripe a bitch about stuff, but the fans never follow through on their gripes.  The fans say during a strike they will stop watching, stop coming...but that isn't the truth.  The players and the teams aren't going to take less revenues, because they know the fans, despite their threats, will still watch and still go to the games. 

As such, the model is either most of the nation pays a few dollars a month for it, or the model is the sports fans pay a ton for it....either way, the leagues and the teams and the players are going to get theirs.

[ChicosBailBonds]

Now that's an interesting point.

Is there a recruitment strategy for DirectTV to acquire these types of customers? Obviously exclusive content is one way to do it, but if these folks are already finding enough content elsewhere, what would drive them to DirectTV?

I don't work directly for them anymore....note...I said directly.  It's complicated, but I'm 100% in the Over The Top (OTT) space now with the Netflixes, Hulus, Crackles, DramaFevers, Ooyalas, HBOGos, etc of the world).   But the answer is yes, the same thing DISH is doing....you target these people with smaller bundles (not a la carte, but smaller bundles) that are more affordable, but you put restrictions on it like one concurrent stream.  This is targeted to the single guy that thinks everything should be free for $5.00.  That's the market that is targeted for this. 

You create programs with major colleges to stream content and get them started young.....did you know only 28% of college kids now bring a tv to their dorm?  But 87% have a lap top or tablet.  So that's where you go. 


The other part that brandx and so many people simply cannot process right now.  Where do these people think Directv, Dish, Charter, Comcast, etc are going?  They are going to own those pipes as well.  This is why AT&T is buying DIRECTV.  They're going to control the pipes either way.  Including the wireless pipe...wait until you see PCell and those technologies coming.  The big guys are going to own all those pipes, and they are moving big time into solidifying those positions.   

[ChicosBailBonds]

Not to mention all of the music and video content included free with the subscription.  I have Prime, and my fiancee pays for Netflix. And we are thinking about dropping Netflix, because we hardly ever use it anymore. We have cable too. It is probably overkill. But I want my MU basketball, and I can watch just about every game on FS1/2. At least my bill is still under $100 a month. I'd never pay $175. Hards, I'd recommend you switch to a new provider or at least bitch to the retention department that you are going to leave until they cut you a deal. I am lucky that in my neighborhood of Chicago I actually have 2 cable providers, in addition to the satellite/AT&T options. I switch every few years to keep it reasonable.

LOL....."included for "free".

The American public is duped daily.  One of my old bosses is the head of program acquisition for Amazon Prime.  There is nothing free about it, but the American consumer will buy some of that stuff up until the cows come home.  It is fun to watch.  They charge $99 for Prime....it is profitable for them....most of their consumers don't come close to consuming the shipping costs or the content costs for audio and video....note the service was $79 just last year, so that extra $20 is part of that "FREE" stuff.  LOL

[Canned Goods n Ammo]

I don't work directly for them anymore....note...I said directly.  It's complicated, but I'm 100% in the Over The Top (OTT) space now with the Netflixes, Hulus, Crackles, DramaFevers, Ooyalas, HBOGos, etc of the world).   But the answer is yes, the same thing DISH is doing....you target these people with smaller bundles (not a la carte, but smaller bundles) that are more affordable, but you put restrictions on it like one concurrent stream.  This is targeted to the single guy that thinks everything should be free for $5.00.  That's the market that is targeted for this. 

You create programs with major colleges to stream content and get them started young.....did you know only 28% of college kids now bring a tv to their dorm?  But 87% have a lap top or tablet.  So that's where you go. 


The other part that brandx and so many people simply cannot process right now.  Where do these people think Directv, Dish, Charter, Comcast, etc are going?  They are going to own those pipes as well.  This is why AT&T is buying DIRECTV.  They're going to control the pipes either way.  Including the wireless pipe...wait until you see PCell and those technologies coming.  The big guys are going to own all those pipes, and they are moving big time into solidifying those positions.   

Thanks for sharing.

I appreciate the insights.

While I understand that INSERT CABLE COMPANY will own "the pipe", I also believe that the high price for content delivery leaves a space in the market for somebody to develop a better mousetrap. Now, I have no idea what it will look like, or how it will work. But, I know that if there is a profit to be made, somebody will find out a way to do it.

EXAMPLE: Amazon has basically eliminated Best Buy for me. I haven't been in one of their stores for years. I don't need a salesman. I need a way top purchase products efficiency (headphones, laptop, hard drive, batteries, usb stick, etc.)

10 years ago, that would have been a crazy thought. Today, it seems perfectly rational.

In 10 years, we might see some advances in personalized media that still provide value to the brands/networks, but also offer consumers a more competitive pricing model.

[Hards Alumni]

Not to mention all of the music and video content included free with the subscription.  I have Prime, and my fiancee pays for Netflix. And we are thinking about dropping Netflix, because we hardly ever use it anymore. We have cable too. It is probably overkill. But I want my MU basketball, and I can watch just about every game on FS1/2. At least my bill is still under $100 a month. I'd never pay $175. Hards, I'd recommend you switch to a new provider or at least bitch to the retention department that you are going to leave until they cut you a deal. I am lucky that in my neighborhood of Chicago I actually have 2 cable providers, in addition to the satellite/AT&T options. I switch every few years to keep it reasonable.

I'm in the Madison area... not Madison proper.  I am stuck with Charter... or I have to switch to Dish/DirecTV.  My wife has called the retention department every time that the bill jumps like it just did, and after a while they finally throw us back on to a promotional deal.  This time she hasn't had much luck.  We will probably give it another go... but if it doesn't work out, I have zero love for Charter.  People complain about Comcast on the daily, but I would lay odds that my Charter experience has been total garbage as well.

[Spotcheck Billy]

Time Warner announced that they will be adding a $2.75 sports surcharge on all bills in order for customers to blame sports for their higher cable bills