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Netflix, Inc. Message Board

  • singhlion2001 singhlion2001 Jan 7, 2013 3:20 PM Flag

    HBO is throwing down the gauntlet to make its HBO Go service the most dominant streaming service among consumers.


    Can HBO Go catch up with Netflix?
    L.A. Biz by Gina Hall
    Date: Monday, January 7, 2013, 12:02pm PST
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    HBO is throwing down the gauntlet to make its HBO Go service the most dominant streaming service among consumers.

    Gina Hall
    Email | Twitter
    HBO is throwing down the gauntlet in the race with Netflix to become the most dominant streaming service among consumers. The Time Warner-owned channel renewed its deal with Universal Studios which will allow it to show content from the studio through 2022, according to the Los Angeles Times.
    The terms of the output agreement were not made public, but sources close to the situation noted that the agreement is similar to the one the channel struck with 20th Century Fox, per the report. That deal required HBO to pay over $200 million a year for Fox content. HBO also has output agreements with Warner Brothers and Summit Entertainment.
    The deal will strike a blow to Netflix’s streaming service as it will make Universal Studios films, in addition to Warner Brothers and Summit content, exclusive to the pay channel and its own streaming service, HBO Go. Right now, HBO Go is only available to subscribers to the pay channel. However, HBO is testing subscription only services in Scandinavia, so it’s likely to assume that the service will soon be available in the United States. Considering many fans of HBO programming are also consumers who don’t subscribe to cable, the service may prove to be a very popular alternative to Netflix.
    HBO securing Universal films comes just after Netflix cornered the rights to Walt Disney Co.’s major film releases, per the Times. Netflix is also expected to aggressively pursue an agreement with Sony Pictures. In addition, Universal’s new affiliation with HBO will likely quell speculation in it’s parent company, Comcast, acquiring newly available pay-channel Starz, which was just launched into an public company by Liberty Media.

    Sentiment: Strong Sell

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