AfterDawn: News

HBO officially declares war on Netflix

HBO has officially declared war on Netflix, telling the company they have to pay full price for DVDs and Blu-rays for their rental service.

The move, which will forbid Netflix from purchasing HBO content at a discount (or rental versions), has made it clear that HBO believes Netflix to be a competitor, one that it will not just roll over for. HBO has significant assets and has seen strong demand for its HBO Go streaming service.



Because of HBO's decision, Netflix must purchase seasons discs of True Blood and other popular series at retail prices. Netflix, for its part, says it will "continue to provide HBO titles on DVD and Blu-ray to our members."

Netflix has tried for over a year to license a deal with HBO for its original content, but the company has not budged. That being said, HBO remains a premium channel, and its HBO Go streaming service is available to anyone who pays for the TV channel.

While HBO does make its shows available on iTunes as a la carte downloads, it will not make it available as part of a subscription model. HBO is said to be Netflix's role model in the original content streaming business, and it is clear they are trying to emulate the service by purchasing content like David Fincher's "House of Cards" and a new season of "Arrested Development."

Written by: Andre Yoskowitz @ 6 Jan 2012 0:42

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• 15 comments

• autolycus

  Here is the problem with HBO go. 1) it leads to more piracy and 2) the usernames and passwords are shared everywhere and 3) you actually have to pay for HBO. Sorry but cabling is dying in the U.S. if you don't see that, it's because you don't want to admit you pay too much for things you don't watch already.
  
  It's like NFL Sunday ticket. 500 dollars for 16 teams when all you need is 1. it's a broken model and it wont last much longer. Where as something like MLB's price (99 for a whole year) to watch any team out of market (since FOX Sports is the monopoly on this one).
  
  If you were a fan of an out of state market, which would you pick? 500 bucks for 100 bucks? HBO go is already 35/ month + cable (which they lessen to 20 bucks a month for the first year). Just not worth it. it's over 2000 a year for TV. I've bought cars for 300 bucks that, with little parts and maintennce last me 80k. I sure get more out of a car than 2000 bucks from cable. TV>

  6.1.2012 01:07 #1

• miracleman (unverified)

  I think you are so right Autolycus, its just not worth it at all. I think if cable wants to come back they have to stop charging those high prices. Cable need to make customers choose channels they want to watch, and charge a reasonable rate.

  6.1.2012 03:29 #2

• 3MUK

  "Officially declares war" haha i like
  

  Always remember youre unique, just like everyone else.

  6.1.2012 04:32 #3

• CaptHook

  Ironically, I just downgraded my cable service as soon as I discovered UseNet and Astraweb.. No need for a premium cable service or specific channel, all I need is Sickbeard!
  
  The industry declared war on the consumer years ago by charging outlandish prices for their services. Not to mention the charges per room that you need a set-top-box plus all the taxes and surcharges. With Usenet and my own personal PVR in Sickbeard, my family watches all the programming we want, when we want. Not being held captive to the industry no matter which channel or service the content may be broadcast under. We dictate the rules and the programming... Media freedom is exhilarating!

  6.1.2012 10:11 #4

• LordRuss

  The only problem with your model is 'access'. In a metropolitan area where competition will merit a better yield, obviously prices benefit the consumer. When you live in an area where the cattle & the squirrels chew into your CNN better than you do & the only provider's attitude is "piss off", well, you get the idea.
  
  The other options also lie with with what comes with the package as well... internet, phone or whatever. I get my internet as DSL plain blows in relation. But knowing that satellite would probably have so much more HD channels, I know I'm getting screwed.
  
  Thus, the world turns...
  

  http://onlyinrussellsworld.blogspot.com

  6.1.2012 11:24 #5

• hearme0

  I hate HBO. First company to increase monthly to 14.99. Arrogant cable channel with sub-par shows IMO. Geared for the slow thinking and the elderly all too often.
  
  I completely agree with the first comment. Leads to piracy and username/pw sharing. Go ahead HBO......shoot yourselves in the foot.

  6.1.2012 12:10 #6

• ThePastor

  I'm with CaptHook. I haven't turned on my basic cable that I get for free, in months.
  I get all of the shows I want, sometimes an hour or so before they air. They are all DVR'd and in the quality I want. It's simple.
  
  Whether you agree with this approach or not you have to admit that it clearly can be done. If TV were offered legally like this then it would be even easier.
  
  HBO can go to hell as far as I'm concerned. I want their shows but don't want their crap.
  But, I've also kicked Netflix to the curb as well. They lost me when they doubled my price.
  

  "But the bigger point here is that UMG has effectively admitted this takedown was never about copyright. They demanded YouTube censor Megaupload and justify that by saying they have a contract which allows it so its fine. Its painfully clear what they would do with a law like SOPA that gives them much more power"

  6.1.2012 14:11 #7

• Tristan_2

  You know what,normally I'd say BS for this type of move but due to Netflix supporting SOPA,go all out HBO.
  

  6.1.2012 14:34 #8

• SProdigy

  All the hate for HBO while people post on here ADMITTING they steal their shows? If you rent them on DVD or watch them first-run, fine, but the reason I pay a higher price for their service is because of all the people who don't pay at all!
  
  That said, the flaw with HBO GO is it's Flash based website. It's terrible to navigate and if you try using it via an HTPC and HDTV, well, I'd rather watch YouTube. I've already sent a complaint to DirecTV as well, since they block their HBO subscribers from accessing the service via a Roku box (shame on you DirecTV.)
  
  And who pays $35 for HBO? IDK if I even pay $15.
  
  As for the bitter ones who whine about the Netflix price, you still receive all of the Starz content included with your $8 streaming plan, which is roughly half the price of paying for the Starz channel (or HBO) plus you get all of the other content included.
  
  I remember when the main complaint was there not being enough to watch on Netflix, and now that they have all of these studios and licensing agreements to add more and more, we complain? What did you think was going to happen? They sure aren't going to lose money on these deals, right?

  6.1.2012 21:20 #9

• llongtheD

  Originally posted by SProdigy:
  As for the bitter ones who whine about the Netflix price, you still receive all of the Starz content included with your $8 streaming plan, which is roughly half the price of paying for the Starz channel (or HBO) plus you get all of the other content included.
  Starz has cancelled their agreement with Netflix effective Feb. 28, 2012 so their streaming content library will take another hit. As far as their by mail DVD program, I've never had a problem with Netflix, and have had a better experience than with blockbusters. Maybe it's my location.
  @Tristan_2, I'm unaware of Netflix supporting SOPA, I've looked at the bills list of supporters and Netflix isn't one of them. Maybe I've been misinformed. Could you provide a link of some kind? If they do indeed support SOPA, I'll be dropping them as well.

  6.1.2012 22:38 #10

• Tristan_2

  Originally posted by llongtheD: Originally posted by SProdigy:
  As for the bitter ones who whine about the Netflix price, you still receive all of the Starz content included with your $8 streaming plan, which is roughly half the price of paying for the Starz channel (or HBO) plus you get all of the other content included.
  Starz has cancelled their agreement with Netflix effective Feb. 28, 2012 so their streaming content library will take another hit. As far as their by mail DVD program, I've never had a problem with Netflix, and have had a better experience than with blockbusters. Maybe it's my location.
  @Tristan_2, I'm unaware of Netflix supporting SOPA, I've looked at the bills list of supporters and Netflix isn't one of them. Maybe I've been misinformed. Could you provide a link of some kind? If they do indeed support SOPA, I'll be dropping them as well. Go to the Wikipedia page for Sopa and go under the Supporters..its the only link I can remember off hand but I had lost one link that had a lot of supports for the bill.
  

  7.1.2012 00:07 #11

• llongtheD

  Originally posted by Tristan_2: Originally posted by llongtheD: Originally posted by SProdigy:
  As for the bitter ones who whine about the Netflix price, you still receive all of the Starz content included with your $8 streaming plan, which is roughly half the price of paying for the Starz channel (or HBO) plus you get all of the other content included.
  Starz has cancelled their agreement with Netflix effective Feb. 28, 2012 so their streaming content library will take another hit. As far as their by mail DVD program, I've never had a problem with Netflix, and have had a better experience than with blockbusters. Maybe it's my location.
  @Tristan_2, I'm unaware of Netflix supporting SOPA, I've looked at the bills list of supporters and Netflix isn't one of them. Maybe I've been misinformed. Could you provide a link of some kind? If they do indeed support SOPA, I'll be dropping them as well. Go to the Wikipedia page for Sopa and go under the Supporters..its the only link I can remember off hand but I had lost one link that had a lot of supports for the bill. Either Netflix has pulled its support of SOPA, or they're no longer listed.

  7.1.2012 00:20 #12

• LordRuss

  As of 07Jan2012 I found this link printed from the Judiciary Committee. It's a PDF file of all the individuals they have listed as supporting the SOPA. It wasn't dated, so I can't immediately confirm its validity.
  
  LINK
  
  Hope it helps a bit. But to answer a bit, Netflix is not on this list. "However", in SProdigy mild defense, like any bureaucracy, those idiots take forever to update anything, & given the current atmosphere and condition of of GoDaddy & how politicians like their kickbacks, they may also withhold their higher paying constituents.
  
  

  http://onlyinrussellsworld.blogspot.com

  7.1.2012 13:41 #13

• llongtheD

  Originally posted by LordRuss: As of 07Jan2012 I found this link printed from the Judiciary Committee. It's a PDF file of all the individuals they have listed as supporting the SOPA. It wasn't dated, so I can't immediately confirm its validity.
  
  LINK
  
  Hope it helps a bit. But to answer a bit, Netflix is not on this list. "However", in SProdigy mild defense, like any bureaucracy, those idiots take forever to update anything, & given the current atmosphere and condition of of GoDaddy & how politicians like their kickbacks, they may also withhold their higher paying constituents.
  Thanks Russ.

  7.1.2012 14:42 #14

• RandyStar

  This is so ridiculous ... two companies rated low in customer satisfaction duking it out! I still subscribe to Netflix, but, if there were an equal (both content and delivery), I would jump ship in an instant. I dropped HBO years ago because their content plays over and over and over again ... for years! Imagine what would happen if we stopped supporting either or both companies for a day or week or even month!

  13.1.2012 12:53 #15