HBO's Multi-Screen Strategies: To PC, Smartphone and Tablets
March 2011
HBO seems to be looking to go deeper with its Internet TV capabilities. In March, HBO announced it expanded its library that’s available over the Internet for subscribers. The company’s “HBO GO” service will expand from 600 titles, to over 1,400 at no extra cost to subscribers.
In February 2011, HBO reportedly purchased equipment and services from video delivery technology firm Azuki Systems, which enables mobile content delivery. Since Azuki helps to deliver mobile content, it seems that HBO is using the company’s technology to help deliver content to smartphones and tablets. HBO is also preparing to launch an iPad app that would allow subscribers to watch content, so Azuki would fit into this model. Azuki said it already is working with Content Providers like CBS, Sony Music, Sony Pictures, Sports Illustrated and Sprint.
In order to watch content over the Internet, users must first authenticate that they are paid subscribers on the HBO Website and identify their Pay-TV Operator.
Still, it seems very likely that HBO will start offering more content via its Website and iPad app. HBO is uniquely positioned for such a service because it owns content and also licenses movies before other networks and windows.
Here's why HBO (and similar companies) can succeed with Internet TV:
- HBO Produces and Owns Original Content.
- HBO is Marketed as a “Premium” Channel and Brand.
- Expect HBO GO on Tablets and Smartphones.
- HBO GO is Not for Cord Cutters.
- HBO GO Exists Outside TV Everywhere.
- HBO GO Isn’t Netflix.
- HBO Pays Big for Early Access to Films.
- Extending Relationship with Current Audience.
- There’s No Extra Cost for HBO GO.
The full article is available in the March 2011 IPTV Bulletin by MRG, Inc. To subscribe, go to: www.mrgco.com/bulletin.html
Will Consumers Pay for Premium VOD?
March 2011
Movie studios and other Content Owners are trying to find out if consumers will be willing to pay for premium VOD titles of up to US$30. At this price point, it would allow consumers to view current or recently released theatrical movies, as early as 60 days after release in movie theaters. Apparently, the studios are trying to look at ways to generate additional revenue from their titles because of slowing theatrical and DVD revenues.
Opening a new distribution window, for home consumers that no longer go to the theater, may be their best bet. Of course the biggest issue is that consumers simply need to wait (longer than 60 days at least) before being able to buy or rent the movie at a much lower price.
The big question is, “Will consumers pay for such a premium VOD service?” And what should the price point be? Clearly not every title is suitable for a premium price. It is likely that big blockbuster titles, HD movies and 3D titles would be something that consumers would pay extra for. But how much? Giving consumers the option to own a DVD or digital copy would also help consumers get value for their money.
Already, some movie studios have experimented with changing their release dates:
Apple’s iTunes, for example, already gets films on the same day they are released to DVD.
Warner Bros. seems to be the studio that has been attempting to change the release windows. For six months, starting in December 2006, Warner Bros. released DVDs and VOD on the same day to viewers in Denver and Pittsburgh in the U.S. The result of that test with Comcast showed VOD rates up 50%, DVD sales up 10% and rentals down 2%. [1]
In December 2009, Sony released the movie “Cloudy with a Chance of Meatballs” straight to consumers (via Sony Blu-ray players and TVs) for US$24.95. The movie was in 720p format, and available a month before retail DVD and Blu-ray release.
Cons:
• Cinema Theater Owners say this will cut into their revenues.
• It may also cut into revenues from DVD retailers.
• Digital content must be protected to ensure no piracy.
• Unknown questions about delivery of “Premium” VOD.
Pros:
• Consumers get instant access to blockbusters films.
• Consumers may get additional content (DVD, digital copies).
• Incremental revenues for SPs and Content Owners.
[1] http://metue.com/05-01-2008/itunes-warner-brothers-studios-dvd-day-and-date-releases/
To subscribe to MRG's IPTV Monthly Bulletin, go to: www.mrgco.com/bulletin.html
Adobe Unveiled a TV Everywhere Solution
March 2011
Adobe Systems unveiled a TV Everywhere solution for Operators looking to launch Internet TV delivery to their subscribers. The company’s “Adobe Pass” authentication system allows viewers the ability to watch content as long as they subscribe to a Pay-TV Provider. Turner Broadcasting System is already using Adobe’s solution for Websites like TBS, TNT, TruTV, Cartoon Network and Adult Swim. MTV Networks is also using the Adobe Pass system. The company said that Brightcove will integrate its solution into its online video publishing system, and that CDN company Limelight Networks was also an initial partner.
The full article is available in the March 2011 IPTV Bulletin by MRG, Inc. To subscribe, go to: www.mrgco.com/bulletin.html
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