Bewkes Confirms that Netflix is Not Getting HBO Shows

Erik Gruenwedel from Home Media Magazine covered a panel discussion at the Jeffries Global Technology, Internet, Media and Telecom Conference in New York where Time Warner CEO Jeff Bewkes said, "We Don’t Understand’ an HBO-Netflix Content Deal." 

Bewkes concurred, saying Netflix has done a good job creating a service with an excellent user interface that adds “utility” as well as a bidder to make programming more value.

“That’s helpful to the system,” he said, adding that subscription VOD services with low monthly fees have to situated correctly within the distribution channel.

“If it is done right, it can be additive,” Bewkes said. “What nobody logically should want is something that’s subtractive or destructive to the value of the content. It’s just a question of everybody [being] in the right place in the economic chain.”

In the same story Gruenwedel reports that if you tweet "Netflix," you'll see an ad for HBO. Looks like the HBO-Netflix war is just getting started.

Comments

[SPLG]

Why would HBO sell their stuff to Netflix?

What's in it for them? Their model currently supplies them with plenty of money. Despite the success of Netflix, that hasn't changed.

There is no compelling reason for them to be on Netflix.

[Lee Millar]

...plus wouldn't that defeat the whole purpose of starting HBOGO, make it exclusive for HBO cable customers, then go ahead and also distribute their content through Netflix taking some of the sparkle out of the HBOGO service which is in the process of trying to find its own territory niche online.

[gir]

Man, I hate politspeak. I very much doubt NetFlix is willing to be in what Bewkes' considers the "right place".

[Lonny]

Too bad I cancelled my HBO sub, last month. It was something i had been paying for years, and hardly ever watched, especially since the Soprano's stopped running. Unfortunately HBO Go is not enough to get me to sign back up. Mobile Data Caps and ATT throttling Video are going to keep most people from being able to use it on the GO anyway.

In my view Pay Channels like HBO, Showtime, Cinemax, Starz, etc... are all on the way out. The trouble with them is you have to subscribe to all of them, in order to have a fraction of the choices you get on Netflix. Granted, all of the Newer content appears on one of these channels long before it shows up on Netflix, but that is exactly the problem. Unless you have all of them, there is going to be some content you don't get. How much is that going to cost you?

What tends to be forgotten is that ALL content (except Original programming) is available on Netflix before it is available on any of these Networks through the DVD rental service. Other than Original Programming what do any of these channels have to offer that you cannot get somewhere else a lot cheaper? Is the Original Programming worth the cost of the subscription? I don't think so.

Channels like HBO are finding it harder and harder to hang on to their share of viewers and have to offer more and more choices like HBO Go, and 6 different HBO channels at no additional cost the subscriber to hang on to them. I remember paying 20 bucks a month back in the late 70's for HBO, and back then there was no original programing, and there was only one channel. That was before the proliferation of VCR's, Video Stores, and reasonably priced Video Tapes. Back then HBO truly had something unique to offer that you could not get anywhere else.

Back on Topic..... Mr. Bewkes is doing his Investors a disservice not working a deal with Netflix. Why not make a few bucks licensing your content to Netflix before you go out of business. I am sure Netflix is willing to pay you more than AMC is for the Soprano's.

[SPLG]

Reed Hastings, is that you? ;)

[Henchman-24]

Let's see if I understand the situation. HBO/Showtime produce original content (OC) for broadcast on their respective channels. Then, around a year later, they market DVD boxsets to sell. We, Netflix subscribers, then get to rent them!

Seems to me if HBO/Showtime really want to redefine/refine the "economic chain" the first thing they should do is stop marketing seasonal DVD boxsets. Then they can whore out their stable of OC shows via their own websites which still require consumers to have a cable/DBS subscription plus the Premium Channel subscription.

Then, about a 5 or so years after the OC shows have wrap and have been thoroughly squeezed to the last perceived dime to be made, then and only then should HBO/Showtime start selling output deals (sans digital options, of course) to other cable-only networks. After all, cable/DBS has to be protected first from the big, bad internets. We'll call this part of the economic chain "situated correctly within the distribution channel."

Of course, by this time the OC shows are completely stale and smell like fish parts sitting in the kitchen garbage. No one cares any more who won what award for whatever show that was produced by HBO/Showtime ten plus years ago.

It would be around this point in the grand scheme of things that HBO/Showtime might be interested in hawking there worn out wares over the internet. First in line would be Own-It options (AppleTV, Amazon, etc.) then when the selling frenzy has subsided a rental PPV or OnD option might be next.

Sadly, it's at this point when Netflix is standing at the door hoping to sign a multi-million dollar deal for their streaming customers.

[Tbob1.wordpress.com]

I agree with Lonny. During the past 15 or so years HBO has produced very good original content. I have enjoyed watching much of it as well as their boxing coverage and Inside the NFL when it aired. However I too discontinued my HBO sub. last year. It's just not worth $12/mo. to me when the original programming is all I was watching. Lately the boxing has sucked, they canned INFL and I don't care about their endless loop of old movies. In fact movies is the least reason for having HBO, and HBO-GO is a non factor. Couple that w/ a satellite bill already near 100 bucks and it just didn't make sense anymore. I still appreciate their original content and will continue to watch it elsewhere at a much cheaper price. I don't care about waiting for it. I wish NF could get HBO content, but I understand why HBO resists even if I don't like it.

[Tester]

Add me to the list of people who are dumping HBO. I have a few months left on promo. After it's over HBO is gone. I don't watch it enough to even justify the promo cost.

[Edward R Murrow]

Game of Thrones, Boardwalk Empire, True Blood - the list goes on and on. If you're into content that counts then I'm not sure why you wouldn't subscribe to HBO. If you're a Netflix subscriber then you'll have to wait until HBO content comes out on DVD.

It looks like Netflix streaming content will truly be re-run TV in the not too distant future.

[Lonny]

@SPLG, I wish I were. What I am is a guy with way too much time on his hands (unemployed in case Reed is in here somewhere). Too much time for watching Netflix, checking out what others have to say about it, and posting my opinion on this website. I am an average consumer trying to find ways to reduce my monthly expenses out of necessity. I am a guy that is only going to keep those services I have to, or give me the most value for the few dollars I have. Goodbye all of those Premium Cable channels, most of the extra channels, and the landline.

I am also a very happy investor in Netflix. (I bought the stock years ago for my IRA simply because I liked the service i was getting for the price i was paying) and had a feeling "No Late Fees" was going to eventually put a hurting on Blockbuster. I never imagined it would do as well as it has, (almost 1000% since i bought it.)

There you have it... A happy customer, a happier investor. Thank You Netflix.

Lonny a.k.a. Mrmanmac

[Louis S]

I look at Netflix as a "premium" service in of itself mostly because I can get any movie I want (literally) on the DVD rental side, and can stream TONS of great shows and movies through my internet connection. I have the 2 disc at a time and its truly a bargain compared to everything else out there. I pay $18 a month for 2 blu-rays at a time w/ streaming. If you just rent new releases on DVD and stream the old shows and movies, its worth the cost and its MUCH cheaper than buying all of the different premium channels.

[BP108]

Warner hates Netflix and they also own HBO. Take a look at any of their commercials. They blast Netflix on New Release, HBO has a new commercial saying watch something you havn't seen before and Bewkes himself calls Netflix a 200 lb chimp

[V-4-Vendetta]

All these spin off service have to be supported by devices (ie: bluray players, roku, etc). I pay for HBO. But they only provide a single season's worth of content on-demand. I am not going to watch from a laptop when I have a 55 inch LCD. I understand that content providers don't want to give their latest seasons, that makes sense. But give up the old content. I'm not rushing out to buy discs. Streaming or Discs, I'm renting it one way or the other. All HBO is doing is making me consider not paying for their service, or lack there of.