ATT HBO CEO OUT

Discussion in 'DIRECTV General Discussion' started by DirectMan, Mar 2, 2019.

  1. Mar 2, 2019 #1 of 11
    DirectMan

    DirectMan AllStar

    189
    20
    Jul 14, 2007
    The CEO of HBO is out of a job - quit or terminated doesn't much matter. Happens after the Court shoots down the Government appeal of the TimeWarner acquisition approval.

    When will the powers to be at ATT dump the CEO of the Directv Group - he has presided over a dramatic decline in customers. What does it take to get fired at that company? Maybe a new CEO would take a fresh look and listen to the existing customers.
     
    jimmie57 likes this.
  2. Mar 2, 2019 #2 of 11
    DirectMan

    DirectMan AllStar

    189
    20
    Jul 14, 2007
    jimmie57 likes this.
  3. Mar 2, 2019 #3 of 11
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    48,308
    1,415
    Apr 17, 2003
    Michiana
    Now that is funny!

    I assume by "customers" you are referring to "end users paying for the service". Those are not the "customers" a CEO has to make happy. His customers are shareholders and people higher on the corporate ladder. Under AT&T ownership, a couple more levels have been added to the ladder.
     
  4. Mar 2, 2019 #4 of 11
    Rich

    Rich DBSTalk Club DBSTalk Club

    32,515
    1,136
    Feb 22, 2007
    Piscataway, NJ
    It's a shame to see this happen. HBO made some of the greatest series ever produced. Sounds like they want more quantity and I'll bet the quality suffers.

    Rich
     
  5. Mar 2, 2019 #5 of 11
    NashGuy

    NashGuy Active Member

    314
    71
    Jan 30, 2014
    Nashville, TN
    We should wait and see. This seems to be the conclusion that everyone is moving to, that AT&T is wrecking HBO (and maybe they will), but the jury is still out. While it is true that HBO is upping the amount of original content they produce, they're not doing so by a crazy amount. I don't think they're moving to a "quantity over quality" strategy.

    AT&T's CEO has referred to Netflix as Walmart and HBO as Tiffany and has said he wants to preserve HBO's reputation for quality. I think the idea is that by combining a somewhat expanded HBO, plus recent content from the Turner networks, plus a vast library of older Warner content, plus some additional licensed library content, AT&T will have an OTT SVOD that can compete with Netflix. But they aren't putting the full weight of that goal on HBO alone. And HBO will continue to be available as its own service via cable as well as OTT. (BTW, if HBO by itself goes for $15, what do you think this broader Warner SVOD is gonna run? $20? $22? $25?

    Whether getting rid of Plepler at HBO was the right move, I don't know. I'm sure he was involved in their success but I don't think he was the only key person involved in HBO's string of beloved series going back to the Sopranos.
     
    compnurd likes this.
  6. Mar 2, 2019 #6 of 11
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    48,308
    1,415
    Apr 17, 2003
    Michiana
    HBO is $5 with DIRECTV NOW (65+ channels $40 2 streams before HBO) ... Netflix is $12.99 (2 stream HD) or $15.99 (4 stream 4K) per month.
    A HBO Time Warner package for $15 would be on par with Netflix. They could price themselves out of the market.
     
  7. Mar 3, 2019 #7 of 11
    NashGuy

    NashGuy Active Member

    314
    71
    Jan 30, 2014
    Nashville, TN
    Yeah, but the $5 pricing for HBO as an add-on to DTVN probably won't last forever. It's a sweetener to encourage DTVN subscriptions.

    At any rate, HBO is never going to be priced at $5 as a standalone product or as an add-on to a basic cable package from Comcast, Charter, etc. HBO Now has always been priced at $15, and with HBO increasing their hours of programming by about 50% this year, it's hard to imagine that price going down by much, if any. (Perhaps we could see HBO Now drop to $12.99 to match the Netflix HD price point, but if that product is doing well at $15, why charge less?)

    So I have to think that this forthcoming "HBO Plus" SVOD will be priced higher than Netflix. I'd be shocked if it comes in for less than $17.99 per month. But you're right, if they price it too high, it will turn folks off, especially those who are already paying for a cable package plus Netflix.
     
  8. Mar 3, 2019 #8 of 11
    James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    48,308
    1,415
    Apr 17, 2003
    Michiana
    I expect the pricing added to other content to be lower than the standalone pricing. The example is $5 HBO with $40 DTVN. The customer is paying $45+ for what would be $55+ if full price for HBO was charged.

    $15 for HBO+Time Warner without DTVN sounds right to me. I believe $20 would be pushing the price limits. HBO Now is $10 with most other services. Perhaps the in house discount will continue for DTVN customers. Although it sounds like the pricing structure for DTVN will change drastically when the new "DIRECTV over IP" is eventually introduced. The new product may become the "large packages of channels" offering and DTVN could become smaller modules than they offer today.
     
  9. Mar 3, 2019 #9 of 11
    Glenee

    Glenee Cool Member

    61
    7
    Sep 22, 2007
    HBO is not even in the ballpark with Netflix. I am surprised that they get as much as they do.
    When the 5g layout becomes a reality look out for netflix and other streaming services. The hold back now is available support internet speeds.
     
  10. NashGuy

    NashGuy Active Member

    314
    71
    Jan 30, 2014
    Nashville, TN
    Well I'll be very pleasantly surprised if this new service -- which will contain expanded HBO original programming, plus a whole lot of other content, it seems -- ends up selling for the same price that HBO Now has sold for since it was introduced in 2015, just $15.

    As for HBO costing only $10 when added to other services, I don't think that's the norm. The regular price for it when added to a cable package from Comcast Xfinity or Altice Optimum is $15. And isn't it $18 from DirecTV (sat)? I know it's $15 when added to Prime Video, Hulu, or PS Vue. That said, MVPDs do have flexibility on pricing and I'm sure some offer it at reduced promo rates to retain more profitable customers, and of course some give it away for free for a period of time to new customers as a sign-up bonus.

    If this new SVOD comes out priced at $15, then I have to believe it will simply replace HBO Now. Makes no sense to me that they would reduce the price of HBO Now and offer it as a cheaper, skinnier option beside the new "HBO+" SVOD. But they've stated that the traditional HBO product will continue to be offered, although perhaps that just means via MVPDs (e.g. the HBO linear channels plus HBO Go). And when those customers realize that they can get an expanded SVOD direct from Warner with a lot of additional content for about the same price that they're paying for just HBO through their cable provider, I can imagine a lot of those folks cancelling HBO and signing up for the new SVOD. Maybe that's how AT&T aims to shift a big chunk of their subscribers away from MVPD middlemen over to their own direct-to-consumer platform.

    I think you're right that there are bigger changes in the offing in terms of content packaging and pricing for AT&T's various MVPDs, including DTV sat, DTV Now, and DTV over IP. Who knows, it's possible that DTV over IP ends up just being an extension the DTV Now service (which itself could be rebranded). Seems like a lot is in flux there now in terms of market strategy.
     
  11. slice1900

    slice1900 Well-Known Member

    9,710
    1,188
    Feb 14, 2013
    Iowa
    My cable provider charges $18/month for HBO, but you can get discounts if you bundle multiple premium movie channels.
     

Share This Page