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Breakingviews: TV's unbundle of joy

Thursday, October 16, 2014 - 03:28

Rob Cox and Jeffrey Goldfarb discuss the new stand-alone HBO, the latest Netflix woes and television as it has never been seen before.

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The television world has been upset by a number of things this week first of all HBO said it would go over the top. That is you can get it even if you work cable subscriber CBS is doing something similar. And Netflix came out with a big pick up that may or may not be related to some of these business model issues Jeff you're looking at the ball trying to interpret what's going on. Let's start with -- HBO this was a pretty big. Big deal what. I think also it give -- giving hints for a long time it might do it -- experimented with it in in Northern Europe. They finally announce that we're gonna have. Breaking HBO out of the bundle they're having -- a lot of details about it about a but it investor presentation yesterday. These are reported to -- -- view or ten million people United States that. It by Internet service from the likes of Comcast right now Larry's brought today don't buy -- says they're saying. So the idea is probably first and that's what they're -- laughter because that doesn't upset the cable. Providers because they are the other resigning right right so there's -- right now so it works -- -- premium -- cable but provider to get the subscription right so they don't -- upset that apple -- But at the same -- to go up these ten million for an end and who knows what happens I have a lot of value there but the point is if it -- saying -- we can work -- our partners they're OK with that. Her point is that as soon as people know that you can get HBO. Which is one of the plywood value the court why wouldn't you just say OK well it it just gives you more incentive because. If you put together an HBO Netflix making it -- yes you can get. You know you can buy some sports packages digitally. Not all the big lives well. Plus your favorite show friends is now available on Netflix right I'm so excited that you too much you know -- but so -- -- which brings in Netflix which who I think Jeff Bewkes the CEO of Time Warner wants called the Albanian army but they weapons. Trade truce with the Albanian and they sold. Was Warner Bros. produces friends sold with the Netflix because it's a little like that's how -- how a candidate Tom it was it was a what happens though. Now that's been coming out with a also ended the day the morning HBO comes out with batons in the afternoon after the market closed Netflix announces. Well we didn't get quite as many she's subscribers as we thought we -- gonna get probably because we charged to walk more that means that we have been charging. And the stock. What did you tail spin. And and that -- -- you pointed out in your piece of course on this that. That -- that the market had hours to digest the Time Warner news. And only responded after that that that -- -- so it's not a business model responses right right up front it's a look at what has happened when netbooks though is that -- the most volatile stocks and markets won the most heavily shorted stocks in the market. It routinely goes through these these crazy eruptions you know right what blockbuster when it ruled that extreme servers and -- Netflix. -- I didn't know I am really on what happened about it that's their job you know they've had revenue shortfalls marketing overtimes in the stock just goes crazy. -- matters it keeps growing keeps building despite. So there was highly leveraged to the growth than their expectations not that's a worrisome signs in their but he seemed to manage to overcome final questions that CBS today is come out with somethings yes about CBS's come out with a separate digital product. Sort of born of a fight -- they had area oh. You know which was supposed to disrupted but. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- --

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Breakingviews: TV's unbundle of joy

Thursday, October 16, 2014 - 03:28