HBO Would Cost Netflix Subs $20 a Month

It's been a busy 24 hours in the cable and Web video world, what with Paul Allen's "dethroning" at Charter Communications Inc. and Netflix Inc. (Nasdaq: NFLX)'s push for Home Box Office Inc. (HBO) content.

  • Want to see HBO originals on Netflix's streaming video service? It won't happen until Netflix hikes the monthly subscription on its streaming-only service from US$7.99 to $20, according to a "high-placed" Time Warner Inc. (NYSE: TWX) exec in this piece from The Hollywood Reporter. (See TW Cable Chief Disses Netflix Streaming.)

  • Microsoft Corp. (Nasdaq: MSFT) co-founder Paul Allen "endured his final dethronement" at Charter, after the company reduced his voting power from 35 percent to about 2 percent. We miss seeing Allen at cable conventions, and won't forget the time he brought his 301-foot yacht, Tatoosh, to the 2002 National Show in New Orleans. (See Paul Allen Suit Down, Not Out and Charter Swaps Board Members.)

  • There's a big battle brewing at the Federal Communications Commission (FCC) over a proposal to auction 120MHz TV spectrum for use by mobile phone carriers that need the bandwidth to deliver mobile video. (See FCC Swaps TV Spectrum for Mobile Broadband.)

  • Boxee added VUDU Inc. HD movies on demand, charging $2 for 48-hour rentals. The emerging over-the-top player says it's on track to add Netflix later this month. (See Entone Crafting VUDU-Powered Cable Boxes .)

  • Google (Nasdaq: GOOG) is handing out Google TV-enabled Logitech Revue boxes to academics, partly in an effort to spur interest in television engineering. (See Google TV Comes Out, the World Tunes In .)

  • Amazon.com Inc. (Nasdaq: AMZN) is buying LoveFilm, a Netflix rival based in the UK.

    — Steve Donohue, Special to Light Reading Cable

  • Prizm 12/5/2012 | 5:14:58 PM
    re: HBO Would Cost Netflix Subs $20 a Month

    Subscribers are already paying $8, so HBO only costs them $12.


    Jeff Baumgartner 12/5/2012 | 5:14:57 PM
    re: HBO Would Cost Netflix Subs $20 a Month

    Yeah, good point. They didn't really go into how they arrived at that figure. Makes me wonder if there's a premium being applied on top for the rights to grab that content from a wide range of devices in and out of home... the same type of thing cable's going to have to negotiate for if they're to have any success with a TV Everywhere play that allows for on-demand and streaming of the live feeds.  JB

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