DirecTV contract punishes HBO if streaming-only gets too popular, sources say

Discussion in 'DIRECTV General Discussion' started by Athlon646464, Dec 16, 2014.

  1. Athlon646464

    Athlon646464 Yada Yada Yada DBSTalk Gold Club

    Feb 23, 2007
    Uxbridge, MA
    DirecTV contract punishes HBO if streaming-only gets too popular, sources say

    ( - The Wall Street Journal reported that DirecTV's contract with HBO includes wording that could punish the channel if its Web streaming-only service gets too popular.

    Full Story Here

  2. joed32

    joed32 Hall Of Fame

    Jul 27, 2006
    Both companies signed that contract, I'm not sure "punish" is the right word.
  3. Athlon646464

    Athlon646464 Yada Yada Yada DBSTalk Gold Club

    Feb 23, 2007
    Uxbridge, MA
    HBO agreed to be punished.

    2 people like this.
  4. dpeters11

    dpeters11 Hall Of Fame

    May 30, 2007
    But, as far as I know, HBO has not actually said when in 2015 this service would go live. The article also says the DirecTV contract is due for renewal next year. I'm sure it will be a topic of great interest to both sides.
  5. toobs

    toobs Legend

    Oct 10, 2012
    How many of us will drop HBO from Directv once the standalone goes live?

    I've been watching a lot more HBO GO on the PS3, especially past series like 6ft Under.
  6. inkahauts

    inkahauts Well-Known Member

    Nov 13, 2006
    That all depends on price and what it will include. I'm guessing there will be zero incentive to dump it from a mso if you have it now.
  7. JosephB

    JosephB Icon

    Nov 14, 2005
    Birmingham, AL
    If you plan to keep DirecTV (or any other cable or satellite service) why would you do that? The only rationale I could imagine would be if DirecTV blocked a device you wanted to use from HBO Go. Otherwise you're simply reducing your options of how you can watch or record HBO programming

    There's no indication that this standalone service will be any cheaper, and there have been many indications that HBO wants to sell the stand alone service through the cable companies anyway, since they're all in video services anyway. Even if HBO's contracts allow them to offer HBO Go over the top, I would be shocked if most of the major MVPDs like Comcast, DirecTV, and others didn't have a "most favored nation" clause in their contract that guarantees they have the right to purchase HBO at the lowest rate offered to anyone.
  8. Drew2k

    Drew2k New Member

    Aug 16, 2006
    I will keep my subscription through DIRECTV. I can't imagine the streaming-only plan will be less expensive than DIRECTV; rather, I expect it to be a few dollars more. I also don't know what kind of plans HBO will have and how much content will be available, where DIRECTV is a known quantity. I get all of the HBO channels, I get access to HBO Go (assuming there's a version still available after the streaming-only plans go live), and DIRECTV is fairly flexible in letting me stop or restart premium service channels.
  9. jeslevine

    jeslevine AllStar/Supporter DBSTalk Gold Club

    Jul 21, 2002
    What if it is less expensive? I guess it depends by how much. Talk is It will be 15/month, and that is about 3 dollars cheaper than what DTV charges if HBO is the only premium service you have
  10. WestDC

    WestDC Well-Known Member DBSTalk Club

    Feb 9, 2008
    Don't forget to add your ISP / 3g/4g Bill to that fee as well :) I'm a D* HBO Sub and the only thing on HBO go is what has already aired first. Only Good for Standalone folks
  11. toobs

    toobs Legend

    Oct 10, 2012
    More major networks will have a standalone product with streaming. I'm really happy that HBO is biting the bullet with satellite and cable and offering a standalone service like Netflix and other. I will be dropping HBO on Directv and going with standalone. This is the way to go, like it or not.
  12. slice1900

    slice1900 Well-Known Member

    Feb 14, 2013
    Even if it costs the same, or more? Why?
  13. Laxguy

    Laxguy Honi Soit Qui Mal Y Pense.

    Dec 2, 2010
    Hmmm. Even if it's marginally cheaper with OR without internet costs, I'll stay with DIRECTV's HBO. Why cut down options?
  14. toobs

    toobs Legend

    Oct 10, 2012
    You have a good point. I almost always watch the streaming version because it's always there and I don't have to dvr or search or VOD.

    I pay for however many channels and I only watch 10. Why am I paying for channels that are in a package that I have to get in order to watch 10 stations?
  15. SomeRandomIdiot

    SomeRandomIdiot Godfather

    Jan 6, 2009
    Circle the beginning of April on your calendar.
  16. stvcmty

    stvcmty Member

    Oct 24, 2014
    Baldwin MD
    [SIZE=medium]Part of the reason channels are sold in packages is because the content provider makes the satellite(cable) company sell them that way. If a content provider has 1 great channel and 9 junk channels, they can contractually force the satellite(cable) company to carry all 10 channels even though the satellite(cable) company only wants the 1 good channel.[/SIZE]

    [SIZE=medium]Then the content provider can sell 10 channels worth of advertisements, but the satellite(cable) provider and the consumer have 1 good channel and are stuck with 9 junk channels. The satellite(cable) company does it because a pay TV line up without that 1 good channel would cause people to go to a competing satellite(cable) company. Consumers are stuck with it because all the satellite(cable) companies deal with the same bundling from the content provider.[/SIZE]

    [SIZE=medium]The only way for a satellite(cable) company to not provide those 9 junk channels is to not offer the 1 good channel.[/SIZE]

    [SIZE=medium]The lowest tier of satellite(cable) packages offered to the consumer tend to be channels the satellite(cable) company is paid to get to as wide of an audience as possible, with whatever the satellite(cable) company can offer to get the people looking for the best “value”. As the tiers go up, the number of channels included explodes as the “if you want to carry X you need to provide Y and Z” channels increase.[/SIZE]

    [SIZE=medium]If a consumer were to get 1 good channel on its own, the content provider will think “I can’t sell 10 channels worth of add time like I could with a deal through a satellite(cable) company, so I need to make up for that by charging more for the 1 good channel than it actually costs me to provide it.”[/SIZE]

    [SIZE=medium]So in some ways, the channels you never watch are your friend.[/SIZE]
  17. SomeRandomIdiot

    SomeRandomIdiot Godfather

    Jan 6, 2009
    Because your bill would be just as high, if not higher, to watch those 10 channels if a la carte.
  18. 242424

    242424 AllStar

    Mar 22, 2012

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