re: HBO to offer Stand-alone Service Next Year

quote:

---

In its presentation to investors and analysts today, Time Warner made clear that it has no intention of joining Netflix in its fight to expand the definition of net neutrality. Executives said they see content companies paying to support the increasing strain on broadband networks as a "natural evolution" of net neutrality — the complete opposite of the position Netflix is pushing. It also goes against the fundamental tenets of net neutrality as we know it: having content companies foot the ISP's bills is quite literally pay-for-play. That's not surprising, of course, since the majority of Time Warner's revenue and the lion's share of its profit still come from cable TV. It's not going to sever those relationships anytime soon.

---

quote:

---

Depending on how the FCC proceeds, we could soon be living in a world without any meaningful net neutrality. It wouldn't be surprising to see HBO arbitrage its relationships with the cable companies to exempt its streaming service from their data caps — or to offer a bundle where signing up for Comcast or Verizon as your ISP means you get a free year of HBO Go.

---

quote:

---

A standalone HBO Go, potentially with hundreds of million in new revenue, would ramp up its bidding on syndicated series and films, pushing Netflix's already ballooning content costs even higher. And the ISPs just gained an invaluable ally: a major content company signaling its comfortable doing deals around net neutrality. Consumers may be cutting the cord with cable, but HBO isn't.

---