Posted by: crudbasher | August 18, 2010

HBO Going to the iPad, But Not to Netflix

It is fascinating to watch the ongoing content wars.  Most of the entertainment industry realizes that the growth area in the future will be online content.  Netflix got there first and has staked out a business model where they function as a distributor and aggregator for other companies content.  The big problem with that as I have been saying is that the Internet is death to distributors.  It’s very design is to facilitate point to point transfers. Therefore I don’t see how they can make money in the long run with that model.  Now there is also an aggregation function there which is more useful.  People don’t want to have to load a different website or a different app just to see what is on that channel.  Different interfaces will make it an annoying experience.  Therefore Netflix has something of value there.

HBO is going to try out skipping the middle man (netflix) and offer an iPad app for their subscribers.

We are going through a natural phase of the online experience. Companies are trying to figure out how to make money there.  Some have been doing so as aggregators (eg. amazon, netflix, hulu sort-of).

How this affected education is how inconvenient it will be for teachers to access and use this content in the classroom.  What would be most efficient is to have everything in one place (google TV?).

This conflict isn’t over by a long shot.

  • Start of content disaggregation

    tags: technology HBO netflix ipad

    • HBO has big plans to make its online on-demand video service available to more cable providers and on more devices, including the Apple iPad. But one place you won’t see HBO movies and TV shows is on Netflix, according to a Bloomberg interview with HBO co-president Eric Kessler.
    • “There is value in exclusivity,” Kessler said in the Bloomberg interview, going on to say that consumers “are willing to pay a premium for high quality, exclusive content.”
    • As a result, it plans to cater to those consumers by making its HBO Go online video service more readily available. The service, which offers subscribers an additional 800 hours of on-demand content online, is currently available through Comcast and Verizon FiOS, but HBO plans to make it available to all major cable providers over the next six months. It also plans to make that content available on more devices, such as the iPad.
    • As Netflix becomes more like a cable company, HBO’s stance might be a little short-sighted.

Posted from Diigo. The rest of my favorite links are here.



  1. […] This post was mentioned on Twitter by adamschomaker and elearnnet, ipadteacher. ipadteacher said: HBO Going to the iPad, But Not to Netflix « Education Stormfront […]

  2. […] an interesting article on why Netflix can’t continue it’s success.  I have speculated this too.  In short, now that it’s business model is moving to streaming, it is moving into an area […]

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