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If you’re a Netflix fan looking to stream Flight of the Conchords or Boardwalk Empire, you may be waiting for a long time. Time Warner-owned HBO is reportedly witholding its content from Netflix streaming until the latter company increases its subscription rates substantially.

HBO senior VP of corporate affairs Jeff Cusson believes that HBO’s content is too premium for the low rates Netflix currently charges for its popular streaming-only option.
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Said Cusson:

“HBO believes in content exclusivity, especially for high-value content . . . [HBO] has no intention of making its content available for streaming on Netflix.”

Is HBO, whose content is usually quite expensive to produce, justified in witholding its offerings from Netflix? Is this just good business, or is HBO shooting itself in the foot with its actions?
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(via CNET)

9 Responses to “HBO Wants Netflix to Raise Streaming Rates Before it Provides Content”

  1. Visitor [Join Now]
    TardisCaptain [visitor]

    HBO too good for the new way of doing things? Sounds like someone stuck in the past and will soon fall behind the rest of it’s competition. Sorry HBO you’ve got nothing that I want. Even when I had you for a year free before I cut the cord, I may have watched eight hours in total. Netflix knows that it needs to keep it’s prices low to continue it’s growth. Raising them “substantially” will only hurt it in the long run. HBOfail.

  2. Visitor [Join Now]
    Steve S [visitor]

    Screw you HBO!

  3. Visitor [Join Now]
    Jamie [visitor]

    I think HBO is going to be late to the party that most people that watch their shows don’t subscribe to the channel. We just wait for it to come out on DVD.

    If you really want to gauge HBO’s out of touch economic status, go look how much they charge for DVD seasons of their shows compared to the other networks. It’s ridiculous.

  4. Member [Join Now]

    This is typical of the corrupt, monopolistic attitude of content providers today. Their only price concerns should be whether or not Netflix pays them enough money. Netflix’s prices for its customers is completely outside of an honest business concern for HBO. But like others, they seek to control their market through unethical, anti-competitive, and often illegal practices.

  5. Member [Join Now]
    Shemp Howard [shemp-howard]

    Is HBO releasing content to disk? If not, it should.

  6. Visitor [Join Now]
    Russ [visitor]

    I figure Netflix will eventually have tiered streaming pricing but they’re going to do that based on customer demand, not vendor demand. If customers are willing to pay an extra $X a month for access to HBO content or without a 28-day delay etc., they will tell Netflix that. If they don’t then HBO is shut out and will have to do their own streaming; you can’t get any more exclusive that doing it yourself.

    Of course, Time Warner is a competitor of sorts with Netflix, so there’s that.

  7. Member [Join Now]

    HBO needs to get a clue. If only a few people pay for a subscription to your network (and there’s no other way to get the content), then you need to find other ways to get your product to the masses. A hit show only becomes a hit show if enough people watch it. This sort of thinking just baffles me: “I’m going to hoard my precious shows so no one can watch them!”

    Case in point: Showtime understands you need viewers… I just watched the first episode of Californication this morning on Netflix and it’s already got me hooked. So there you go.

    For those wondering, will this lead me to sign up for Showtime? Probably not, but it could if I find that Showtime has a lot more to offer than this one show.

  8. Visitor [Join Now]
    Db W [visitor]

    So HBO is holding out for a “better” payment system, I see this as their way to try and increase subscriptions. Fortunately for me and many others, I can check out HBO’s expensive productions from my local library. So I am saving money by not subscribing to HBO and putting my tax dollars to work!