Cable TV Transformed

Huge news has been hitting the last two days.  After years of denying interest, and in spite of a phenomenally successful video streaming app called 'Go', HBO is now making the move to directly compete with Netflix:

http://recode.net/2014/10/15/hbo-says-its-going-to-start-selling-on-the-web-next-year/

Here is a snippet from that piece:

HBO CEO Richard Plepler, speaking at an investor presentation hosted by HBO parent company Time Warner, said the company will start selling in 2015 a digital version of its service that won’t require a pay-TV subscription.

Plepler said the company will go “beyond the wall” and launch a “stand-alone, over the top” version of HBO in the U.S. next year, and would work with “current partners,” and may work with others as well. But he wouldn’t provide any other detail.

CBS is following suit in a fascinating move:

http://recode.net/2014/10/16/now-cbs-is-selling-web-subscriptions-to-its-shows-too/

Here is a snippet from that piece:

Yup, CBS: The broadcaster is also getting into the digital video subscription business, with an offering that will let users watch almost any show it airs, live or on demand, on a variety of devices.

And like the HBO plan, this one doesn’t require users to have a traditional pay-TV subscription: All you need is an Internet connection and $6 a month.

But there are several big differences between CBS’s Web video service and the one HBO talked about yesterday.

For starters, CBS is selling access to shows that are technically available for free to anyone with a broadcast antenna. And unlike HBO’s service, this one isn’t theoretical: CBS is selling “CBS All Access” right now, via its CBS.com site and its mobile apps.

Needless to say Netflix shares tumbled in trading as it failed to hit its public mark for new user adoption.

I cut the cord from cable TV last year and haven't looked back thank you very much.

Happy Reading,

J.W. Gant