Long Views

Why HBO’s TV Everywhere Economics Don’t Make Sense

  • Wednesday, March 9, 2011

HBO limits its potential revenue from alternative distributors by tying itself so closely to cable.

Time Warner and HBO remain adamantly opposed to licensing content to digital distributors like Netflix, instead choosing to double down on traditional pay-TV distribution with TV Everywhere services. But doing so means giving away content that the network could be making incremental revenue on through those digital licensing deals — not just with Netflix, but with other online distributors too.

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