Will Dissolution of the Netflix-Starz Relationship Impact Video Biz?

  • Netflix walked away from another deal with Starz after that company insisted on a tiered-pricing model similar to what they would get with a cable channel. Netflix did not want to tamper with the simplicity of its monthly fee model.
  • Netflix had reportedly offered Starz more than $300 million per year to renew their agreement.
  • With the demise of the Starz deal, Netflix customers may feel that they are paying more and getting less. Still, Netflix counters that their Starz content accounts for only 5-6 percent of domestic viewing.
  • Netflix will be challenged by competitors like Hulu, Amazon, Apple and Microsoft XBox Live. Moreover, cable companies are increasingly offering similar access to video through TV Anywhere services.
  • Starz may either sell its content to a Netflix competitor or try and create its own streaming brand like HBO.

Next for HBO GO Platform: PS3, Xbox 360, Blu-ray Players

  • Time Warner launched the HBO GO platform earlier this year, with Android and iPhone apps that stream HBO content to mobile devices.
  • TG Daily reports that HBO GO may soon be “getting optimized” for TVs, with the platform becoming available on the PS3, Xbox 360, and other Internet-ready devices.
  • “It may seem like a pointless feature, because if you’re watching your TV, you could just tune into your cable box and watch HBO On Demand from there,” explains TG Daily. “But this way, you’d be able to take your HBO subscription to a friend’s house, or watch content on the app that may not be available on the current HBO On Demand library.”
  • In addition to regular programming content, HBO GO provides exclusive content (such as behind-the-scenes clips) and an intuitive video search interface featuring customizable lists.

HBO GO to Provide Streaming Content to iOS and Android Devices

HBO announced that its streaming service HBO GO will soon offer more than 1,400 titles for streaming via iPads, laptops and smartphones. According to the press release: “HBO subscribers can instantly watch every episode of classics like The Sopranos, Sex and the City and Deadwood and current award-winning series like Boardwalk Empire, Entourage and True Blood as well as blockbuster theatricals – where they want, when they want.”

HBO made its announcement with a YouTube video posted last week. The service will be available for iOS and Android devices.

The HBO promotional video suggests May 2nd as a launch date. The press release specifies that HBO GO will be available to HBO subscribers through Comcast XFINITY TV, Verizon FiOS, Cox Advanced TV and AT&T U-Verse customers. Surprisingly, Time Warner Cable is not currently included in the list of providers (HBO is owned by Time Warner).

HBO was in the news earlier in the year after senior vice president of corporate affairs, Jeff Cusson told The Hollywood Reporter that HBO “has no intention of making its content available for streaming on Netflix,” adding that the company “believes in content exclusivity, especially for high-value content.” It looks like the new capabilities of HBO GO support that strategy.

Related CNET story: “HBO Go teased for iPad, iPhone, Android” (4/19/11)

Related Gizmodo post: “HBO Go Will Bring Every Episode of All Their Shows to iOS and Android” (4/19/11)