Netflix Wants HBO, How Much Is It Worth to You?
Netflix Wants HBO, How Much Is It Worth to You?
Posted 01/19/2011 at 6:59am
| by Paul Lilly
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There's a rather interesting article in The Hollywood Reporter that takes an in depth look at Netflix and the impact its fast growing streaming service is having on the industry. One of the points the article touches on is the feasibility of going after content providers like HBO.
"HBO believes in content exclusivity, especially for high-value content," says Jeff Cusson, the channel’s senior VP of corporate affairs. "That’s our rationale for not selling streaming rights to a competing subscription service." HBO does license its shows to iTunes and Amazon, but indicated it has “no intention of making its content available for streaming on Netflix."
Citing a high-placed Time Warner executive, The Hollywood Reporter says Netflix would have to raise the price of its streaming-only service from $7.99 a month to $20 to make it worthwhile. Not so fast, says Ted Sarandos, chief content officer of Netflix.
"They make an incredibly great product that is very expensive to produce," Sarandos says. "But we're buyers and they're sellers, so we'll figure out a deal that makes sense. If we don't, then the service doesn't have everything, and that's OK too."
Some of what Netflix does pay for content rights may surprise you. Starz, one of the first to jump on board, inked a deal some analyst say is in the neighborhood of $30 million (that figures to increase to anywhere from $100 million to $300 million before the end of 2011), while it's believed Netflix is paying $150 million to $200 million for a year's worth of Disney content. You can see how it all starts to add up as Netflix adds more providers to the mix.
So here's the question: How much would you be willing to pay for a streaming subscription, and what would have to be included to justify that ceiling price?
Image Credit: Netflix
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aafterman
January 28, 2011 at 3:45pm
I would easily pay $50/month if I could get all my TV shows streaming. I wouldn't go streaming only so I could still get movies on Blu-Ray and not worry about the lack of streaming movie content. Cutting cable for $50/month of Netflix would be a huge win.
aafterman
January 28, 2011 at 3:45pm
I would easily pay $50/month if I could get all my TV shows streaming. I wouldn't go streaming only so I could still get movies on Blu-Ray and not worry about the lack of streaming movie content. Cutting cable for $50/month of Netflix would be a huge win.
TechLarry
January 20, 2011 at 2:26pm
They don't want to spend the necessary money to create great series any longer (Sopranos, Deadwood, The Wire, etc...)
They cancelled Deadwood because it was too expensive. #1 rated show and they cancelled it because they didn't want to spend the money. Released all the actors.
And in it's place we got "John From Cincinatti" instead. How'd that work out for ya HBO?
The difference between Band Of Brothers, probably the best mini-series ever made, and The Pacific was terribly obvious. The Pacific didn't even come close.
bathtbgin
January 19, 2011 at 12:29pm
I would only want HBO and Showtime for their original shows and specials, I could really care less about what movies they have since I netflix meets all my movie watching needs. IF HBO or Showtime allowed me to watch thier original programs over netflix at around half the price of what it would cost to add them to my cable plan then yes I would pay a bit more for premium content. But I'm not gonna pay full price for half the content.
zepontiff
January 19, 2011 at 9:46am
Revolves around games and not the what's on tv tonite like the mindless masses. So IMO they already have plenty of content for me and I will not spend any more than my $10.
deadsenator
January 19, 2011 at 5:16pm
...your life revolves around mindless games instead? How much cerebral growth is involved in gaming? You might do better by reading a book once in a while. I understand not wanting to watch some types of television, but calling those that do "mindless" whilst boasting of your own mindless pursuits is a bit ironic, don't you think?
Check out PBS once in a while. It's pretty cool. Frontline, Nova, American Experience, Independent Lens are amongst the shows I enjoy. Yes, I watch some normal 'drivel' too. Mythbusters, South Park, TDS, Arrested Development (for the second time), Whitest Kids You Know, football, etc.
I DVR everything, so no commercials. Yes, I love playing games too and I won't spend more than $10 on Netflix content.
Peace!
someuid
January 19, 2011 at 8:31am
HBO is nuts if they think their content is so amazing as to justify telling me what I should pay for Netflix.
All content owners are modern day Scrooges.
deadsolid
January 19, 2011 at 7:56am
If Netflix got TV shows a week or so later from every major outlet (NBC, USA, BBC) I would pay $20 or maybe even $30 a month, only because that would mean I could cut cable which is easily 4 to 5 times that.
If this were to happen, we would need strong and clear neutrality laws.
rburkegt
January 19, 2011 at 7:51am
Every television service offers their base service at some price and HBO as a premium add-on. Why can't Netflix offer an HBO add-on for $10 that enables HBO content in the streaming service?
Ghok
January 19, 2011 at 9:11am
I like this idea.
My biggest problem with any of this though is that as much as I love some HBO shows, when those shows are off season, I have no reason to watch the channel (the same is true of any channel). I don't channel surf, I have a few specific shows I like. This is why streaming works so well for me. I'd never pay the inflated costs that cable TV has become. For just a few shows, as much as I like them, it's just not worth it. It's like going to an all you can eat restaurant when all you want is a piece of cake. If something like Netflix provides a LOT of content for a fair price then that's not an issue. Maybe one day they'll be the ones paying studios to make shows for their service. The only problem there would be a lack of competition, as I don't see many people wanting to pay for multiple streaming media providers unless they were REALLY cheap.
aviaggio
January 19, 2011 at 7:33am
I have little to no interest in streaming. Both content and quality are sub par IMO and not worth it at any cost.
I Jedi
January 19, 2011 at 7:24am
Currently, I am on the 1 DVD out/unlimited streaming plan with Netflix. In order for me to want to pay more than I do a month, which is roughly $10 bucks, Netflix would have to honestly get currently T.V. shows on Netflix a week after they air. I would also want Netflix to get more quality movies to the streaming arena. Don't get me wrong, I have found a ton of classic movies about gangsters, war, drama, etc, that they were worth viewing; however, it is becoming harder and harder to find good classic titles to watch over Netflix streaming: I need moar content!
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