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