HBO looking to find an Internet Video channel

Filed in archive Internet TV on November 28, 2006

Forgetaboutit

I read that an HBO spokesman confirmed that the network is exploring creation of a broadband Internet Channel. The plans were first reported by the Financial Times.

The spokesman said that HBO is discussing a possible Web venture with all its affiliated TV operators. Translation: the cable and satellite companies.

ABC, CBS, NBC, and Fox have multiple reasons to explore Internet video. One of them is that they are developing a direct channel to the viewer, often cutting out the middleman. While no one pretends that this mechanism will replace the cable operator anytime soon, anything that lessens Comcast and Time Warner Cable's clout is all for the good if you are an advertising-supported network.

HBO, on the other hand, relies on the cable and satellite companies to collect subscriber fees. That does not mean that the cable companies have veto power over any decision that HBO makes. However, if HBO were to mimic its subscription fee model on the Internet, it would have to find a partner who could collect the fees and show the video.

You just know that if Comcast could guide HBO's design, it would use the video to support its own Internet strategy. I say drop out of the walled gardens and try something a little bolder. How about using someone like Real Networks to collect the fees and show the video?

So, if you are excited about the prospect of seeing HBO over broadband, I say 'forgetaboutit!'