>> their largest carriers also serve a lot of cable internet, for most it wouldn't be adding a competition so much as adding another way to get at subscribers money.
The status quo is that the typical HBO sub has a cable bill over $150/mo, because he already has broadband. Helping that subscriber cut the cord and go Internet-only (while unbundling HBO) will therefore result in a lower cable bill for the subscriber. A portion of the money the subscriber saves comes out of the carrier's pocket. This is the classic trading of analog dollars for digital pennies, and carriers will resist it as long as they are able (in the absence of a new big revenue source).
Regarding positioning: HBO is very good at producing content, but so are a lot of the organizations that provide content to Netflix (e.g. CBS, NBC, TNT, Showtime, Disney, etc.) $8 gets you access to all of those vs. a hypothetical $5 to get the output of a single studio. It's going to be very hard for HBO to hold the line on pricing in that environment.
The status quo is that the typical HBO sub has a cable bill over $150/mo, because he already has broadband. Helping that subscriber cut the cord and go Internet-only (while unbundling HBO) will therefore result in a lower cable bill for the subscriber. A portion of the money the subscriber saves comes out of the carrier's pocket. This is the classic trading of analog dollars for digital pennies, and carriers will resist it as long as they are able (in the absence of a new big revenue source).
Regarding positioning: HBO is very good at producing content, but so are a lot of the organizations that provide content to Netflix (e.g. CBS, NBC, TNT, Showtime, Disney, etc.) $8 gets you access to all of those vs. a hypothetical $5 to get the output of a single studio. It's going to be very hard for HBO to hold the line on pricing in that environment.