For years HBO has created fan favorite content such as True Blood, Deadwood, and of course The Sopranos. For subscribers of the online streaming service Netflix, these favorites could be watched instantly or rented in DVD format. Now HBO has revoked the discount they once extended to Netflix, forcing them to go elsewhere to purchase HBO original movies and shows.
The Reason for Revoking:
There has been a lot of speculation for the real reason behind the revoke. From comments made by Netflix CEO Reed Hastings which called HBO Go its primary competition. HBO Go is the mobile on-demand service offered by HBO that allows viewers to stream their favorite original content on mobile devices.
The more acceptable reasoning for the discount denial is new HBO Go app that released a few months ago. The new app contains tons of HBO content available to subscribers and accessible on everything from smartphones to tablets to laptops. With the HBO Go service being invested in, there is no benefit to offering HBO’s exclusive content to another streaming service such as Netflix.
Their content is still available on iTunes for viewers to rent and will remain that way. iTunes charges on a per episode basis. They no longer have an interest in making content easily available to other subscription based services such as Netflix when HBO Go is a viewing option for those looking to stream their content.
What does this mean for Netflix?
Even with HBO revoking their discount to Netflix, that doesn’t mean they cannot continue to offer HBO’s content. They are still able to find other sources for purchasing the content and could even find a deal with another distributor. They are even able to purchase the content at retail prices if that becomes the only available option.
Netflix states that it will continue to offer HBO’s popular movies and shows and though it is a nuisance, it will not add up to any additional expenses. With many other available means of getting their content, Netflix will have no problems getting the shows and movies and subscribers will still be able to enjoy their favorites as they always have.
With Netflix expecting over half of all TV viewing in the US being online in 10 years, there is still value in offering HBO’s content, regardless of price. Streaming TV and movies have already seen a spike in users in the past couple of years as DVD purchases continue to fall. DVD rentals are still on the rise due to viewers with slower internet connections or unavailable bandwidth, and Netflix is still offering their mail-rental DVD service as well.
Roger Carson is a writer and movie lover that keeps back-up copies of his favorite films by utilizing DVD duplication services