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25 Replies Last post: Jan 6, 2006 3:17 PM by SeanoVox   1 2 Previous Next
Click to view Macworld.com's profile Enthusiast 1,900 posts since
Feb 6, 2004
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Jan 4, 2006 10:40 AM

Editors' Notes Weblog: I want my HBO

The way Philip Michaels figures it, if HBO were to join Disney and NBC by selling its shows on the iTunes Music Store, it would actually save him money. more
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Click to view cpoff's profile Macworld Editorial 663 posts since
Mar 25, 2005
1. Jan 4, 2006 11:09 AM in response to: Macworld.com
Re: Editors' Notes Weblog: I want my HBO
I'm not so sure it's as simple as the folks at HBO reaching for their calculators. Because by your logic Phil (my humble boss), almost all print publications - including our own - would go out of business by offering the same product online at no extra cost. Granted, newspapers and magazines can still monetize their content online by selling ads whereas HBO would have to leverage something (oh no, not commercials!) into their programming. Big, commercially produced podcasts are moving in that direction and I imagine everyone else in that space is trying to do the same.

Bottom line: I don't think it's such a slippery slope for HBO - or any big media outlet, for that matter - to partner up with the likes of Apple. Because while the iPod and digital-media market is booming, it still pales in comparison to the number of people who park it in front of the television each night to soak in their favorite shows. And that's where big media companies make money hand over fist. If they just extend their brands into that digital market, then they'll figure out some way to make it pay off in the long run.

Curt

PS. I'll now start packing for my inevitable assignment to the Macworld Antarctica bureau. Chris will welcome the company.
Click to view Graeme_Smith's profile Member 483 posts since
Apr 21, 2005
2. Jan 4, 2006 11:26 AM in response to: cpoff
Re: Editors' Notes Weblog: I want my HBO
In reply to:<hr />
PS. I'll now start packing for my inevitable assignment to the Macworld Antarctica bureau. Chris will welcome the company.

<hr />


Have fun!
Click to view eatapc's profile New Member 34 posts since
Dec 15, 2004
3. Jan 4, 2006 11:38 AM in response to: Macworld.com
Re: Editors' Notes Weblog: I want my HBO
Complicating the HBO math:

-- What's the profit margin on an iTunes download? How much goes to Apple (versus how much of my HBO fee goes to Comcast)?

-- Most people would pay for an iTunes download in order to have shows conveniently available "on-the-go" even while keeping their HBO on the Comcast box.

-- Lot's of people don't subscribe to HBO because it's too expensive. These people, who are not now HBO customers, would certainly be interested in downloading some HBO "water cooler" episodes. That's a license to print money for HBO.
Click to view T1mac's profile New Member 32 posts since
Aug 31, 2004
4. Jan 4, 2006 11:57 AM in response to: Macworld.com
Re: Editors' Notes Weblog: I want my HBO
While it's fine to watch dramas and sitcoms like "Lost" and "The Office" on the Video iPod, IMHO I think the real market is in shows like "The Daily Show" on Comedy Central, or shows like Letterman, Conan, or Leno. Since these programs come on too late for early risers and not everyone has cable, these are the perfect shows to time shift and take with you. And since you watch "The Daily Show" for audio and not video, the small iPod screen makes little difference. If Apple gets these type of "talk shows" for the right price point, like $.50 - but no more than $.99 an episode, it could be a huge hit.
Click to view Ronald_Schoedel's profile Member 366 posts since
Jul 11, 2005
5. Jan 4, 2006 12:40 PM in response to: Macworld.com
This would be WONDERFUL!
I refuse to spend the $80 a month on cable TV that I would need to get a package including HBO. I refuse to spend the $60 a month I would need to spend to get half a dozen channels that are even remotely interesting.

For this reason, I support proposed legislation that would require cable cabals to offer a la carte channels, instead of bundling 5 interesting channels for every 40 useless channels.

For the same reason, I would love to see HBO or other premium services or cable channels on iTunes. There are couple of HBO shows on now and planned for this year that I would love to watch, but not for $80 a month. Let me spend $8 or $16 a month on a new episode each week of one or two shows, and I will definitely do it. As it stands now, HBO is getting zero dollars from me. As it could stand, HBO could get lotsa dollars out of me they could never otherwise get. I am sure I am not the only one in this boat. Of course, iTunes TV is very young. It would be great for HBO to be known as one of the pioneers!

Ronald Schoedel
Click to view OM_user's profile Member 649 posts since
Oct 13, 2004
6. Jan 4, 2006 1:59 PM in response to: Ronald_Schoedel
Re: This would be WONDERFUL!
I completely agree. Right now HBO gets not a penny from me because I refuse to spend the money they ask for the few shows they air that I'm interested in. For any customers like Philip Michaels that they might lose a subscription to, they will gain people like me buying their shows a la carte. I would gladly buy episodes of shows like Six Feet Under and a couple of others that I'd like to see. In the end they might even stand to make more money.

All this leads to another issue though. As TV moves more in this direction of downloadable shows, Apple really needs to work out some way for us to burn these episodes to a DVD or some other media to view on our TVs, or else they need to come out with a cool new product that allows us to easily stream shows from our Macs to our TV sets (here's hoping!). I don't always want to watch shows on my iMac screen. For shows that only I want to watch, it's fine. But if my wife and I want to watch something together, it's a tad inconvenient for us to gather around my iMac.
Click to view Peter Cohen's profile Macworld Editorial 4,204 posts since
Feb 5, 2003
7. Jan 4, 2006 2:07 PM in response to: OM_user
Re: This would be WONDERFUL!
In reply to:<hr />
I would gladly buy episodes of shows like Six Feet Under and a couple of others that I'd like to see. In the end they might even stand to make more money.

<hr />


They're already doing this with DVDs, so it's not that much of a stretch to consider that they should do the same with some digital distribution method.
Click to view pdrayton's profile Enthusiast 1,821 posts since
Sep 19, 2003
8. Jan 4, 2006 2:29 PM in response to: Macworld.com
Re: Editors' Notes Weblog: I want my HBO
People keep missing the boat in understanding the real value to the media companies in having their programs available a la carte via the iTunes Music Store... sales of shows there represent incremental revenue without adversely impacting existing channels (broadcast TV, DVD, etc.).

For consumers it's a new way of enjoying favorite programs, or partaking in new ones, outside of the traditional places for watching those programs (on the sofa in front of a TV). A reporter for the New York Times got it right when she wrote about how a 5G iPod and TV shows downloaded from iTunes Music Store changed her daily commute by enabling her to watch programs she didn't have time to watch at home on Cable TV.

HBO won't lose subscribers... what could change is that they'd be able to watch more HBO programs while on the go (on an iPod or laptop).

I think your math is way off on a lot of angles... and you can get 25 episodes of Lost for just $34.99. That's $1.39 per 1 hour episode. Not sure why you think a 12 episode season would still cost $1.99 per episode. Maybe it's the Dashboard Calculator widget

If HBO did make programming available on iTunes there would be some people, such as myself and a poster above, who would buy those programs from iTunes but wouldn't pay the Cable company the exhorbitant amount required to get HBO (it would cost me an additional $40 per month to get HBO added to my Cable line-up in Boston). But we aren't currently buying HBO content anyway, so we'd represent incremental revenue to HBO.

When pundits stop playing with their calculators and start thinking about these programs on iTunes being incremental purchases then they'll start seeing why TV shows on iTunes is really going to take off. As it is, I think the pundits are defaulting to the same outlook they had when the iPod mini first debuted 2 years ago... they said no one would buy it because the per gig price was too high. Wrong
Click to view SeanoVox's profile New Member 83 posts since
Aug 29, 2004
9. Jan 4, 2006 2:56 PM in response to: pdrayton
Re: Editors' Notes Weblog: I want my HBO
some more math... the lost first season dvd is like 48 bucks... for 24 epidodes... or 2 dollars per episode on dvd (pretty much the same as on itunes). the wire season one is 12 episodes for 100 bucks or $8.33 per episode. if you look at the price for lost season one complete on itunes it is about what you pay for the dvd. as for a la cart pricing for cable. most cable bills would go up. due to added equipment costs and the rates that programmers would have to charge MSO's (cable co.) to make up for lost advertising revenue.

sorry some one beat me to the math
Click to view Philip Michaels's profile Macworld Editorial 801 posts since
Dec 14, 2000
10. Jan 4, 2006 3:55 PM in response to: pdrayton
Re: Editors' Notes Weblog: I want my HBO
In reply to:<hr />
Not sure why you think a 12 episode season would still cost $1.99 per episode.

<hr />


My thinking was that if episodes were posted shortly after they aired, I would buy them that way, rather than wait around for a bundled season set, since delayed gratification ain't all it's cracked up to be.

In reply to:<hr />
Maybe it's the Dashboard Calculator widget

<hr />


It's a poor musician who blames his instrument.
Click to view pdrayton's profile Enthusiast 1,821 posts since
Sep 19, 2003
11. Jan 4, 2006 5:01 PM in response to: SeanoVox
Re: Editors' Notes Weblog: I want my HBO
In reply to:<hr />
as for a la cart pricing for cable. most cable bills would go up. due to added equipment costs and the rates that programmers would have to charge MSO's (cable co.) to make up for lost advertising revenue.

<hr />


Well... cable companies don't have to spend anything to enable a la carte channel availability. That capability has been there with most cable companies for quite some time.

As for lost advertising revenue, again, if people are viewing programs in places that haven't been possible before then they still have viewing time available at home, which means they'll just watch different programs when at home. Advertisers will switch ads to whatever is being watched... the number of eyeballs watching TV won't be dropping.

And buying every episode of a program right as it comes out does add up to $1.99 per episode. Which leads to the question, "Since you now watch the program you like on the iPod, but still have the time to watch TV at home, what new program will you be watching on TV?".
Click to view Philbert's profile Old Hand 2,360 posts since
Jun 11, 2001
12. Jan 4, 2006 5:11 PM in response to: Philip Michaels
Re: Editors' Notes Weblog: I want my HBO
I agree with ya' Philip ... but EASE the F' UP on Deadwood!

Click to view j_drake's profile Member 316 posts since
Aug 27, 2004
13. Jan 4, 2006 6:06 PM in response to: pdrayton
Re: Editors' Notes Weblog: I want my HBO
Well... cable companies don't have to spend anything to enable a la carte channel availability. That capability has been there with most cable companies for quite some time.

The equipment has had the capability, it's the billing systems that have lagged behind. They are catching up, but the real problem is that the cost per subscriber paid by the cable co. to the programmers (HBO, SHO, ESPN, MTV, etal) would go way up. Right now a programer gets anywhere from $0.25 to $2.00 per subscriber. And in some cases, it's not just the channel subs but all the subs a cable co. has which can represent a lot of eyeballs when programers go to sell air time for adverts. So before folks start screaming for legislation that forces cable co. to go ala carte be sure that same legislation includes limits on pricing by the programers or else be prepared to pay more per channel than you do now
Click to view pdrayton's profile Enthusiast 1,821 posts since
Sep 19, 2003
14. Jan 4, 2006 6:33 PM in response to: j_drake
Re: Editors' Notes Weblog: I want my HBO
So why is Cablevision in favor of a la carte pricing being made available?

And a telecom analyst said this:

"Customers would likely pay more per channel than they do now, said Jeff Kagan, a telecom analyst based near Atlanta. Most would spend less overall, though, and get what they want."