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Netflix Blames Olympics For Slowing Growth
As HBO Rejects Netflix Claim The Companies Can Work Together
by Karl Bode Wednesday 25-Jul-2012 tags: Video · business · alternatives · bandwidth
Netflix earnings were reported this week and appear to be a mixed bag. On the plus side, the company posted $889 million in revenue and $6 million in net income. On the other hand, investors are reacting poorly to the fact that subscriber growth wasn't quite what some analysts were expecting, with Netflix warning of future pitfalls as they expand into additional international markets. Still, Netflix added 530,000 more U.S. subscribers on the quarter, and is now claiming 27.56 million streaming subscribers worldwide. In a letter to shareholders (pdf), Netflix CEO Reed Hastings blamed the Olympics for a possible coming slide in subscriber growth, while trying to drum up some investor enthusiasm by insisting Netflix could still strike a deal with HBO to offer HBO content. HBO was quick to shoot that idea down, saying the company "not in discussions and have no plans to work with Netflix."

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biochemistry

join:2003-05-09
92361

Not a chance

HBO is way too protective of their content to ever strike a deal with Netflix. How out of touch is the new Netflix CEO?

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:20

Re: Not a chance

He's not out of touch, he's bringing additional pressure on HBO by mentioning it in public. HBO's denial makes it clear who is the one stopping it from happening, which means additional consumer pressure on HBO to get a deal done. So, it's not that he's out of touch so much that he's calling them out.
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Jerm

join:2000-04-10
Richland, WA
kudos:2

Re: Not a chance

said by Guspaz:

it's not that he's out of touch so much that he's calling them out.

Hard to see eye-to-eye when the following is reality:

Price for HBO 1-month: $8
Price for all of Netflix Streaming 1-month: $8
ITALIAN926

join:2003-08-16
kudos:1

Re: Not a chance

LOL EXACTLY. 90% of the people on this forum are out of touch.

Nsane_iceman
Premium
join:2001-02-26
North Richland Hills, TX
said by Jerm:

said by Guspaz:

it's not that he's out of touch so much that he's calling them out.

Hard to see eye-to-eye when the following is reality:

Price for HBO 1-month: $8
Price for all of Netflix Streaming 1-month: $8

Extra Netflix Streaming tier /w HBO content: ~$15-17 / mo

Easy...
--
Avatar by: dandelion | Tell me, tell me what you're after. I just want to get there faster.
brad

join:2007-09-06
Etobicoke, ON

Re: Not a chance

said by Nsane_iceman:

Extra Netflix Streaming tier /w HBO content: ~$15-17 / mo

Easy...

They don't deal with Netflix then I download the content at $0.
JMccovery

join:2011-01-08
Mobile, AL
said by Jerm:

said by Guspaz:

it's not that he's out of touch so much that he's calling them out.

Hard to see eye-to-eye when the following is reality:

Price for HBO 1-month: $8
Price for all of Netflix Streaming 1-month: $8

I wish I could get HBO for $8...

If I don't sign a contract with Comcast, HBO will cost me $23.95/mo, signing a 2-year contract for TV, HBO will be free for three months, $15.95/mo for three more months, then $23.95/mo for the rest of the contract... Hmm, Netflix seems like a much better deal...

battleop

join:2005-09-28
00000
Is Mark Cuban a major shareholder? This guy is about as full of shit as Cuban.

spewak
R.I.P Dadkins
Premium
join:2001-08-07
Elk Grove, CA
kudos:1
Reviews:
·SureWest Internet

Re: Not a chance

said by battleop:

Is Mark Cuban a major shareholder? This guy is about as full of shit as Cuban.

Nailed it!
--

Romney equals Epic Fail!

PapaMidnight

join:2009-01-13
Baltimore, MD

Re: Not a chance

Right on the head!

loli
Premium
join:2002-08-26
South Richmond Hill, NY
Reviews:
·Earthlink Cable ..
said by spewak:

said by battleop:

Is Mark Cuban a major shareholder? This guy is about as full of shit as Cuban.

Nailed it!

That is a great picture. Carry on.
--
Verizon FiOS 35/35 | »bit.ly/PTg8Qn
rdmiller

join:2005-09-23
Richmond, VA
Hastings isn't new. He founded the company.

NWOhio2

@buckeyecom.net
And Time Warner Media owns HBO.

newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD
kudos:1

Bottom Line

Here's the problem in a nutshell ...

quote:
The company's troubles began when it attempted to split its DVD-by-mail and streaming services, effectively doubling the price it was charging customers.
»news.slashdot.org/story/12/07/25···shdot%29
AndyDufresne
Premium
join:2010-10-30

Re: Bottom Line

There service is still relatively cheap. IMO their problem is content. The big companies are making their content harder to come by on Netflix. Won't be surprised that next round of negotiations, Netflix loses access to more programming from Viacom and Time Warner.

newview
Ex .. Ex .. Exactly
Premium
join:2001-10-01
Parsonsburg, MD
kudos:1

Re: Bottom Line

The lack of content, which continues its slide towards slim & none, is exactly what make the price increases so unpalatable.

Eddy120876

join:2009-02-16
Bronx, NY
You got it Andy. If content providers would listen to the public and see how much revenue they will receive from Netflix they would be swimming in money. Instead they think they will earn more by acting their way which is not true. Look at the walking dead season 3 is about to start and yet poor Netflix hasn't updated it to season 2 because A&E is trying to milk the popularity of the show by trying to sell the DVD which is doing so so not that great like Netflix or Hulu version. Oh on the Hulu side it sucks because you can't see the show on your Ipad or laptop but you can see it on your tv and home desktop.

NWOhio2

@buckeyecom.net

Re: Bottom Line

why would they use Netflix? They can do it on their owns sites. Why do you think Hulu has what it does. They all own part of it.

HBO2go doesn't need Netflix- NF NEEDs them.

HBO can do the same as TVLand did and other Viacom stations; create their own apps and websites with no problems- and offer it free with their own ads.
brad

join:2007-09-06
Etobicoke, ON

Re: Bottom Line

said by NWOhio2 :

why would they use Netflix? They can do it on their owns sites. Why do you think Hulu has what it does. They all own part of it.

HBO2go doesn't need Netflix- NF NEEDs them.

HBO can do the same as TVLand did and other Viacom stations; create their own apps and websites with no problems- and offer it free with their own ads.

Yay. create their own useless crap. woooo. I want that so bad... NOT.

Simba7
I Void Warranties

join:2003-03-24
Billings, MT
Netflix needs them? Whatever.

As for Viacom, I've seen 5 year olds that are more mature.
ominae

join:2003-05-11
Columbus, OH

Re: Bottom Line

I have Netflix streaming and DVD. At $16/month it's a cheaper option by far than my $60/month (and climbing every year like clockwork) cable bill. Worse still, that doesn't include any premium movie channels. No HBO, Showtime, TMC or Skinemax. Between the streaming and DVD rentals I see pretty much everything I want to see (maybe a little later than I'd like, but I'm patient).

As for content, what makes HBO and the like so great? You get several new movies every month, and then they replay those movies and other previous releases on a continual loop for the remainder of the month. The only thing HBO has going for it is it's original series and that's a matter of taste (loved Boardwalk Empire, could care less about Game of Thrones).

Until we have a la carte pricing (now there's a idea whose time will never come) I have no problem finding better uses for the $44 savings.

Eddy120876

join:2009-02-16
Bronx, NY

Re: Bottom Line

the only thing keeping Cable alive is live sports. Once that goes the way of Netflix pricing then you can say good bye

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: Bottom Line

ESPN3, MLB season pass, and UFC on Xbox....problem solved.
--
"WHEN THE LAUGH TRACK STARTS THEN THE FUN STARTS!"

Eddy120876

join:2009-02-16
Bronx, NY

Re: Bottom Line

I do agree there are those choices but I was referring to a unifying service like Netflix for sports. Can you imaging a Netflix for all Leagues MLB,NHL,NBA,NFL etc etc for under 100 bucks I would be on it ...Not a fan of the UFC but good to see theres choices for those fans.

Eddy120876

join:2009-02-16
Bronx, NY
True but look at it from this point of view...ANOTHER APP instead of just one no need to maintain the app,feed etc etc..just sit back and get paid.
margaf77

join:2000-12-22
Bayonne, NJ
Reviews:
·Boost Mobile
·Verizon FiOS
·Optimum Online
said by AndyDufresne:

There service is still relatively cheap. IMO their problem is content. The big companies are making their content harder to come by on Netflix. Won't be surprised that next round of negotiations, Netflix loses access to more programming from Viacom and Time Warner.

I think you are exactly right, I was checking out my fatherinlaws netflix and there was so little I was interested in watching that I would never sub.

PapaMidnight

join:2009-01-13
Baltimore, MD
I was amazed by just how much content was lost when Starz pulled out. Time Warner or Viacom removing their content alone could practically cripple if not destroy Netflix.

Subaru
1-3-2-4
Premium
join:2001-05-31
Greenwich, CT

Re: Bottom Line

said by PapaMidnight:

I was amazed by just how much content was lost when Starz pulled out. Time Warner or Viacom removing their content alone could practically cripple if not destroy Netflix.

I never saw anything starz had that was worth watching on netflix
osravens

join:2011-01-26
Cumberland, MD

Everyone Gets on Netflix

Because Comcast didn't seriously up your bill $8 at some point?

Considering some of their promotional offers, people have seen double rate increases in their triple plays.

But nowhere near that kind of anger or animosity. Somehow Netflix is the devil when they're our only hope.

michieru
Premium
join:2009-07-25
Miami, FL

Re: Everyone Gets on Netflix

People are retarded. Nothing new to see here.

PapaMidnight

join:2009-01-13
Baltimore, MD
quote:
But nowhere near that kind of anger or animosity. Somehow Netflix is the devil when they're our only hope.
Not quite.

The problem with this is Comcast is the known evil. People have no choice but to deal with it as Comcast (like a significant amount of other providers) happens to be the monopoly in the area. It's very much similar to the angst regarding Pepco in D.C. and Maryland. Who else are they going to go to for utilities? Likewise, it's that way with Comcast. As much as we hate them, where are we going to go for internet? Verizon is killing their DSL where it's actually available (and good luck on getting FiOS if you don't already have it available to you), Most 3G/4G providers are a joke or provide poor service with ridiculous caps at ludicrous prices, Dial-Up is not an option, and HughesNet? L.O.L. This just happens to be a matter of choice, and with regards to Netflix, they actually have one.

As for calling Netflix the paragon of hope, that's a REAAAAAAAL stretch.
silbaco

join:2009-08-03
USA

Not going to happen.

HBO needs more money than Netflix has or ever will offer. Since HBO is a premium service, Netflix would be a direct competitor to HBO's current service. There is no way Netflix could or would offer HBO as much money as they currently get per subscriber. HBO's refusal is the obvious answer. It doesn't matter how many subscriber Netflix has, they can't offer HBO as much as they are getting now. Several HBO shows are incredibly expensive to produce and the company obviously wants to make a little extra cash, as all companies do.

Guspaz
Guspaz
Premium,MVM
join:2001-11-05
Montreal, QC
kudos:20

Re: Not going to happen.

Netflix would be a competitor (albeit one that pays them), but to HBO's television business. Netflix typically does not have the current season of shows they carry, acting instead as a back catalogue. Netflix would compete with HBO's DVD sales, more than anything else, at which point the financial game is similar to anybody else selling DVDs and also on Netflix.
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Developer: Tomato/MLPPP, Linux/MLPPP, etc »fixppp.org

PapaMidnight

join:2009-01-13
Baltimore, MD

Re: Not going to happen.

That pretty much sums it all up.

Michail
Premium
join:2000-08-02
Boynton Beach, FL
kudos:1

a la carte content?

I love Netflix and think it's still a great deal over all. I suppose it's because I like independent films and documentaries.

I wonder if they'd ever be able to do a la carte content? The cable companies can't but Netflix might just be the company that could. It would be a great way to subscribe to the likes of HBO.
sparks

join:2001-07-08
Little Rock, AR

huh

what does the olympics have to do with any of this?

maybe its bad carma.
or a price increase....no that can't be it.
dantheman706

join:2012-07-23
White Pine, TN

RE

Everyone I talk to about Netflix say they only keep it for a few months, then cancel cos Netflix doesn't add enough new movies and shows every month.

I like Crackle myself. Free, the ads between shows are only like 60 second long, and they add more shows I like at the first of every month

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