Hacker News new | ask | show | jobs
by bsandbox 5175 days ago
It's not that they wouldn't prefer to get their money earlier. It's that they are in bed with the cable companies, who have significant power because they provide a huge chunk of HBO's revenue. HBO don't want to risk losing that revenue by disturbing the cosy relationship.

Cable companies are fiercely protective of their status as content providers. As they see it, the biggest threat to cable is that it gets turned into a commoditized dumb pipe. Any move by partners like HBO in the direction of supplying content over IP is seen as a move towards marginalizing their business.
2 comments
SnowLprd 5175 days ago
And that's just it: cable has already turned into a commoditized dumb pipe for a large segment of the population. Instead of recognizing this new reality and adjusting to it, the cable industry seems intent on sticking its collective head in the sand and pretending as if the world hasn't changed.
link
thwest 5175 days ago
The industry isn't sticking its head in the sand, they are out there aggressively purchasing content creation to ensure that the most interesting content is only delivered through their pipes. They're going out with all guns blazing in order to protect past rates of profit. Shareholders aren't of a mind to let an industry peacefully adjust to a less profitable state.

Bring back the trust busters.

link
SnowLprd 5175 days ago
I agree with your overall sentiment. But I still contend that this strategy isn't going to work out for them in the long run. We live in a world where content can be accessed directly, quickly, and on demand. The industry can try to "ensure" that the most interesting content is only delivered through their pipes, but given the ease with which this content can be procured elsewhere, that approach doesn't seem like a sustainable long-term strategy.
link
aidenn0 5174 days ago
Yes but the C level executives will be retired or working somewhere else by then
link
milesskorpen 5175 days ago
Having done some work at cable companies ... both are dependent on each other. HBO has huge clout at the MSOs of the world, and they like it that way. At the same time, HBO makes MSOs lots of money because they can bundle it with kruft (e.g., Starz) and charge more than for either alone.
link