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(Forbes)   HBO co-president thinks internet-based TV is on the way out. Also expects dinosaurs to make a comeback   (forbes.com) divider line 67
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2645 clicks; posted to Business » on 11 May 2012 at 5:42 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-05-11 04:16:31 PM
There's about two reasons he could think this
1) He's completely out of touch
2) He's about to join a few networks in an attempt to kill it. In which case, see #1.
 
2012-05-11 04:59:45 PM
I think he's got it backwards.
 
2012-05-11 05:16:03 PM
 
2012-05-11 05:20:19 PM
mp3's are a fad.
 
2012-05-11 05:43:20 PM
wow.. this guy can run HP next then yahoo...
 
2012-05-11 05:44:08 PM
I've twice gone up and down both TFA and TFA's updated and expanded thoughts and I don't see what subby is claiming. Considering his customer base, Kessler has a very reasonable position on cord-cutting.

And even though this was not brought up at all in the article, if you want to make a case that internet-based TV is on the way out, you can do that. You're just going to have to consider that people will replace those with Netflix, Hulu, and HBO Go apps on their TVs.
 
2012-05-11 05:54:45 PM

germ78: Obligatory


My work here has already been done.
 
2012-05-11 05:55:56 PM

unlikely: There's about two reasons he could think this
1) He's completely out of touch
2) He's about to join a few networks in an attempt to kill it. In which case, see #1.


#2 is correct. My prediction is that if Obama loses, there will be a huge antitrust lawsuit seeking to bust up the entertainment industry. And they would have a pretty good case, with the whole internet delivery system at ground zero.
 
2012-05-11 06:01:17 PM
It will be if cable companies are allowed to continue to be monopolistic internet access providers.
 
2012-05-11 06:03:36 PM
So, uh, what happened to HBO To Go? Is that not a thing anymore?
 
2012-05-11 06:04:23 PM

B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?


You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go
 
2012-05-11 06:06:44 PM

FishyFred: I've twice gone up and down both TFA and TFA's updated and expanded thoughts and I don't see what subby is claiming. Considering his customer base, Kessler has a very reasonable position on cord-cutting.

And even though this was not brought up at all in the article, if you want to make a case that internet-based TV is on the way out, you can do that. You're just going to have to consider that people will replace those with Netflix, Hulu, and HBO Go apps on their TVs.


The article quotes him from another interview where he says "cord-cutting" is due to "macroeconomic trends", which the author than states that he means people are using Netflix and Hulu more because of the recession. So internet TV will be on the way out when the recessions ends. Which to me is pretty good evidence that he doesn't see the true trends going on.

If they would just post digital episodes of their shows on Amazon/iTunes (or any other plethora of digital content distributors) for like $5 a pop on release, they would increase revenue by a ton. But then HBO subscribers have less reason to subscribe and their old model falls apart.

Of course most of the media empire needs to realize the old model is currently in the early stages of falling apart. They can rearrange the deck chairs and sue the pirates circling the wreck or they could make those pirates into customers of newer, smaller, faster content sources.
 
2012-05-11 06:08:52 PM

bronyaur1: #2 is correct. My prediction is that if Obama loses, there will be a huge antitrust lawsuit seeking to bust up the entertainment industry. And they would have a pretty good case, with the whole internet delivery system at ground zero.


A GOP-led Justice Department brings "a huge antitrust lawsuit" against some of the biggest corporations in America? Oh..kay.

the Bush administration's policies . . . applied legal standards that made it difficult to bring new cases involving monopoly and predatory practices.

As a result of the Bush administration's interpretation of antitrust laws, the enforcement pipeline for major monopoly cases - which can take years for prosecutors to develop - is thin. During the Bush administration, the Justice Department did not file a single case against a dominant firm for violating the antimonopoly law.

Many smaller companies complaining of abusive practices by their larger rivals were so frustrated by the Bush administration's antitrust policy that they went to the European Commission and to Asian authorities. . .

Conservative antitrust experts, some judges and defendants in such cases have said that the line is too difficult to draw and that it is better to let rivalries play out in the marketplace than in the courts.

After more than a year of hearings and studies, the Justice Department in 2008 published a 215-page report analyzing Section 2 of the Sherman Antitrust Act, explaining the government's approach to the monopolistic and predatory practices of companies.

Reflecting deep skepticism of the role of government in the marketplace, the 2008 report made formal a set of policies that had largely been followed by the Justice Department, but not by the Federal Trade Commission, during the Bush administration.

When the report was issued, Thomas Barnett, then the head of the antitrust division and the architect of the guidelines, said that they were meant to articulate "clear standards" for determining whether certain types of conduct by large companies would harm competition.

In a rare split with the Justice Department, three of the four commissioners at the Federal Trade Commission denounced the guidelines, calling them "a blueprint for radically weakened enforcement" against anticompetitive practices.


And no, the "entertainment industry's" reputation for donating to liberal candidates isn't going to affect the calculus. David Geffen is part of the "entertainment industry," but so are Viacom, News Corp. and Time/Warner.
 
2012-05-11 06:09:03 PM

Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go


I wonder if this is due to some cable network contract. I would probably pay for it as a separate service. Same thing with Sunday Ticket. If it wasn't for that exclusivity deal with DirecTV, I would happily pay for out of market NFL games. MLB seems to be one of the best examples of a content provider that "gets it" and knows how to make money with internet views.
 
2012-05-11 06:10:14 PM
Meh. I would love to pay HBO for episodes of Curb and Crashbox, and in fact I own most seasons of Curb on DVD. But they won't offer me access beyond making me deal with Comcast. I don't want to deal with Comcast. Therefore, I'll find a way to watch those shows that cuts HBO out of the picture completely.

And before someone says it, no I don't think that I'm justified or that it's fair or that I'm morally in the right. It is what it is.

I don't bother pirating old games because Steam is so easy to use. The same thing applies here.
 
2012-05-11 06:13:10 PM

FishyFred: I've twice gone up and down both TFA and TFA's updated and expanded thoughts and I don't see what subby is claiming. Considering his customer base, Kessler has a very reasonable position on cord-cutting.

And even though this was not brought up at all in the article, if you want to make a case that internet-based TV is on the way out, you can do that. You're just going to have to consider that people will replace those with Netflix, Hulu, and HBO Go apps on their TVs.


This is at the bottom now;

Note: An earlier edition of this piece described comments made by Eric Kessler that described his views of cord-cutting as a fad or "temporary phenomenon." Kessler said that he viewed cord-cutting as "minimal" and a result of "macroeconomic conditions" indicating that should economic conditions improve cord-cutting will decrease. To me and others who have written about this, those words indicate that cord-cutting is a problem that will eventually go away as the economy improves - hence a fad or temporary phenomenon. It's important to note that Kessler himself did not say "fad" or "temporary phenomenon" but his words and sentiment in the video do imply that he thinks the problem of cord-cutting is small and will likely go away, and that targeting the cord-cutting audience doesn't make business sense. I paraphrased and quoted a secondary source. This was a mistake on my part and for that I apologize to both readers and HBO.
 
2012-05-11 06:16:03 PM
I believe that HBO does want to sell HBO Go to non-subscribers, but the challenge is:

1) What the price should be;
2) They don't want to cannibalize DVD/Blu-ray sales (or at least what's left of them); and
2) Fearing that cable TV providers that are also ISP will retaliate by throttling HBO Go subscribers' internet service.
 
2012-05-11 06:19:11 PM

thornhill: I believe that HBO does want to sell HBO Go to non-subscribers, but the challenge is:

1) What the price should be;
2) They don't want to cannibalize DVD/Blu-ray sales (or at least what's left of them); and
2) Fearing that cable TV providers that are also ISP will retaliate by throttling HBO Go subscribers' internet service.


Even at $25 a month HBO go would be worth it. The movies are much better than what you get on Netflix and they do a good job of having their show's back catalog available.
 
2012-05-11 06:19:54 PM
When you outlaw watching Game of Thrones on computers, only outlaws will watch Game of Thrones on their computers.
 
2012-05-11 06:20:28 PM
Here's the problem -- and we actually sub to HBO -- we just don't watch TV that is not live sports anymore. Oh, the odd Tosh.0 or 15-20 minutes of surfing. But sitting and watching TV for an hr or 2 just rarely seems appealing. Tried to get in Thrones, but the random soft R t&a was just distracting -- and lazy. East Bound and Down got lazy too.

Mr. HBO is heading up a Buick division -- all his customers are dying and being replaced by people who go, meh at his product.
 
2012-05-11 06:20:34 PM

thornhill: 2) Fearing that cable TV providers that are also ISP will retaliate by throttling HBO Go subscribers' internet service.


That can be remedied in court if need be.
 
2012-05-11 06:23:19 PM

Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go


It's "like" paying for xbox gold to watch Netflix on your TV.
 
2012-05-11 06:25:21 PM

Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go


Who, other than dialup subscribers, doesn't get their Internet via cable?
 
2012-05-11 06:26:01 PM

thornhill: I believe that HBO does want to sell HBO Go to non-subscribers, but the challenge is:

1) What the price should be;
2) They don't want to cannibalize DVD/Blu-ray sales (or at least what's left of them); and
2) Fearing that cable TV providers that are also ISP will retaliate by throttling HBO Go subscribers' internet service.



HBO makes a good portion of its profits on Boxing PPVS. Most companies get a 50/50 split of the PPV revenue, 50 going to the event and 50 going to the cable company. HBO gets 75% of the revenue their boxing PPVs generate. Because of this, HBO will never divorce the cable companies.
 
2012-05-11 06:28:39 PM

B.L.Z. Bub: Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go

Who, other than dialup subscribers, doesn't get their Internet via cable?


You have to be a cable TV subscriber. Not cable internet.
 
2012-05-11 06:29:56 PM

B.L.Z. Bub: Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go

Who, other than dialup subscribers, doesn't get their Internet via cable?


People who have DSL?
 
2012-05-11 06:36:53 PM

LDM90: B.L.Z. Bub: Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go

Who, other than dialup subscribers, doesn't get their Internet via cable?

People who have DSL?


If you can even call those poor sods 'people', but yah.

/up here DSL is all run by bell, and bell's services make your american companies look generous and well intentioned
 
2012-05-11 06:38:32 PM
Stranger things have happened.

rawhe.files.wordpress.com
 
2012-05-11 06:41:40 PM

BumpInTheNight: LDM90: B.L.Z. Bub: Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go

Who, other than dialup subscribers, doesn't get their Internet via cable?

People who have DSL?

If you can even call those poor sods 'people', but yah.

/up here DSL is all run by bell, and bell's services make your american companies look generous and well intentioned


If you're profile is still accurate and you're in Ottawa switch to Teksavvy.
 
2012-05-11 06:44:05 PM

Carth: BumpInTheNight: LDM90: B.L.Z. Bub: Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go

Who, other than dialup subscribers, doesn't get their Internet via cable?

People who have DSL?

If you can even call those poor sods 'people', but yah.

/up here DSL is all run by bell, and bell's services make your american companies look generous and well intentioned

If you're profile is still accurate and you're in Ottawa switch to Teksavvy.


Dude did that last summer the moment it became available in my area, the cable based one to boot since they don't get put under roger's traffic torturing methods unlike the DSL version piggy backing on Bell's lines. It is indeed the shiat, 4MB/sec (big B), unlimited cap and half the price...giddy up.
 
2012-05-11 06:45:29 PM

WhyteRaven74: thornhill: 2) Fearing that cable TV providers that are also ISP will retaliate by throttling HBO Go subscribers' internet service.

That can be remedied in court if need be.


You really think the courts will set things right overnight?
 
2012-05-11 06:48:17 PM

BumpInTheNight: Carth: BumpInTheNight: LDM90: B.L.Z. Bub: Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go

Who, other than dialup subscribers, doesn't get their Internet via cable?

People who have DSL?

If you can even call those poor sods 'people', but yah.

/up here DSL is all run by bell, and bell's services make your american companies look generous and well intentioned

If you're profile is still accurate and you're in Ottawa switch to Teksavvy.

Dude did that last summer the moment it became available in my area, the cable based one to boot since they don't get put under roger's traffic torturing methods unlike the DSL version piggy backing on Bell's lines. It is indeed the shiat, 4MB/sec (big B), unlimited cap and half the price...giddy up.


That is good to hear. I tell everyone I know in the area that complains about Bell/Rogers to switch
 
2012-05-11 06:58:12 PM

Carth: That is good to hear. I tell everyone I know in the area that complains about Bell/Rogers to switch


As do I for sure, now just need netflix and crew to develop enough clout that the makers of shows I want to watch will put their prime content on them and the last elements of Rogers can be severed like the festering growth they have become.
 
2012-05-11 07:03:02 PM
I wish someone would explain to me how DirecTV can block the use of HBO GO on my Roku box. Rather than take their cut of the subscription fee, they get nothing (and like it). You would think they'd be bending over backwards to give me easier access to overpriced services.
 
2012-05-11 07:12:39 PM
That is some farked up, echo chamber, hopeful bullshiat. Anytime you see upper management that out of touch you should run. Or but on a life preserver.
 
2012-05-11 07:47:30 PM

dehehn: FishyFred: I've twice gone up and down both TFA and TFA's updated and expanded thoughts and I don't see what subby is claiming. Considering his customer base, Kessler has a very reasonable position on cord-cutting.

And even though this was not brought up at all in the article, if you want to make a case that internet-based TV is on the way out, you can do that. You're just going to have to consider that people will replace those with Netflix, Hulu, and HBO Go apps on their TVs.

The article quotes him from another interview where he says "cord-cutting" is due to "macroeconomic trends", which the author than states that he means people are using Netflix and Hulu more because of the recession. So internet TV will be on the way out when the recessions ends. Which to me is pretty good evidence that he doesn't see the true trends going on.

If they would just post digital episodes of their shows on Amazon/iTunes (or any other plethora of digital content distributors) for like $5 a pop on release, they would increase revenue by a ton. But then HBO subscribers have less reason to subscribe and their old model falls apart.

Of course most of the media empire needs to realize the old model is currently in the early stages of falling apart. They can rearrange the deck chairs and sue the pirates circling the wreck or they could make those pirates into customers of newer, smaller, faster content sources.


They're available on the Australian iTunes store. That may be because HBO is not available on cable here though.
 
2012-05-11 08:19:01 PM
I only watch sports on my television set. For all my TV shows, I use BitTorrent because the site I go to has the episodes with the commercials stripped out and in the case of British shows like Sherlock, I often watch them before they even air on US television. I watch all my shows on my computer, it's perfectly fine. Movies = DVD's from Netflix which I watch on my computer as well.

Welcome to 2012, media conglomerate dinosaurs.
 
2012-05-11 08:27:38 PM

B.L.Z. Bub: Carth: B.L.Z. Bub: So, uh, what happened to HBO To Go? Is that not a thing anymore?

You need to be a cable subscriber and pay for HBO to get access for it. You can't just subscribe to HBO Go

Who, other than dialup subscribers, doesn't get their Internet via cable?


Me. DirecTv and Cox for internet. With Directv they offer Century Link which not only sucks but has stupid commercials across every platform
 
2012-05-11 08:39:59 PM
Why can't we just continue to have both? I hate how people seem to want it to be tv OR internet. I like having the option of watching shows on both depending on the situation. If I had to choose though I would choose tv - no I'm not old. I kind of hate watching stuff on my computer, I only do it if my tivo or dvr farks up. I only watch netflix on my tv via xbox or tivo.
 
2012-05-11 09:09:12 PM

taxandspend: That settles it, I'm going to start reading the books. I did Harry Potter, why not this series?


They're good. You won't regret it.
 
2012-05-11 09:24:13 PM
I'm not paying $15/month for two shows, which is now one show. The rest of your programming doesn't interest me and I own every movie I give a damn about so I can watch it on my own schedule.

Give me ala carte or I'll just continue to go to Usenet.

/Thrones & Eastbound
 
2012-05-11 09:26:01 PM

NeoCortex42: I wonder if this is due to some cable network contract.


Nope. It was HBO's choice. They could have sold their programming to Netflix, but they chose to start their own, protected system only viewable by people who were already paying them.
 
2012-05-11 09:29:16 PM

bronyaur1: unlikely: There's about two reasons he could think this
1) He's completely out of touch
2) He's about to join a few networks in an attempt to kill it. In which case, see #1.

#2 is correct. My prediction is that if Obama loses, there will be a huge antitrust lawsuit seeking to bust up the entertainment industry. And they would have a pretty good case, with the whole internet delivery system at ground zero.


Obama blamed .... DRINK!
 
2012-05-11 09:54:37 PM
I would love internet based TV if I had the bandwidth to make it work right. Anything with more than 360 lines stops to buffer constantly, or makes Flash crash. Sometimes, the server side is the problem, and even 240 line crap can't stream. Cincinnati Bell Zoomtown and Clear 4G wireless both suck for video.
 
2012-05-11 10:14:58 PM

FishyFred: I've twice gone up and down both TFA and TFA's updated and expanded thoughts and I don't see what subby is claiming. Considering his customer base, Kessler has a very reasonable position on cord-cutting.

And even though this was not brought up at all in the article, if you want to make a case that internet-based TV is on the way out, you can do that. You're just going to have to consider that people will replace those with Netflix, Hulu, and HBO Go apps on their TVs.


My daughter wanted to watch Netflix on the Samsung TV tonight. I loaded the app channel...lo and behold an HBOGo app was installed. Oh look, Vudu, Hulu, Netflix and now HBOGo.

So far HBOGo seems to work just fine via my DSL (7.1mb down)


/timely article is timely
 
2012-05-11 10:19:13 PM
The problem with TV is the channels have diluted the product so much (and diluted the product their customers--advertisers--care about, namely ratings) that the business model is a house of cards. They are chasing smaller pieces of the pie with increasingly expensive productions. This why TV died out in the 2040s.
 
2012-05-11 10:36:32 PM
Do people actually watch movies on HBO any more?
 
2012-05-11 10:52:47 PM
Fun fact: HBO Go isn't even available for all HBO customers. I live in MS, which apparently mine as well be another country because we only have one option for a cable provider and they do not offer HBOGO for HBO subscribers. It's totally bullshiatty
 
2012-05-11 11:00:42 PM

thornhill: I believe that HBO does want to sell HBO Go to non-subscribers, but the challenge is:

1) What the price should be;
2) They don't want to cannibalize DVD/Blu-ray sales (or at least what's left of them); and
2) Fearing that cable TV providers that are also ISP will retaliate by throttling HBO Go subscribers' internet service.


The issue is that HBO currently has a sweet deal currently. They get to just focus 100% on providing quality content, and let everyone else do the heavy lifting. The Cable providers have to worry about marketing, distribution, billing and getting that content into people's homes. Everyone thinks it's a great idea to cut out the middle man, but middle men are quite useful and often times necessary when they're taking on all the overhead and risk.
 
2012-05-11 11:04:35 PM
High production value TV is a relic of an age where advertisers paid a lot of money for eyeballs. The HBO guy realizes this. His mistake is in thinking that there is an alternative model for funding high production value TV. The error on the part of most people who watch TV through torrents is that the state of affairs will continue where they get to watch high production value TV funded by other people. Even if you came up with "Steam for TV", you won't be able to switch enough people back to paying for stuff if they can get it for free through torrents. "Steam for TV" is only viable if you stamp out torrents - because torrents/magnets are already one-click simple.
 
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