Netflix CEO: We Fear HBO Go

December 8, 2011 -

Netflix CEO Reed Hastings says that he sees an "arms race" in the streaming entertainment sector that his company currently dominates, and the biggest competition they face is Time Warner's HBO Go.

"The competitor we fear most is HBO Go,” Hastings said this week at the UBS media conference in New York. "HBO is becoming more Netflix-like and we’re becoming more HBO-like. The two of us will compete for a very long time."

While Hastings may fear HBO GO, he doesn't seem to be too scared of services from Verizon and amazon.com, who he says will have to spend $1 - 2 billion a year on content licensing deals to be any kind of threat. He also adds that services like these will first need to get on various devices like Internet-ready TV's Xbox 360, PS3, Roku, Wii, 3DS, and more.

Half of home-video viewing will come through the Internet as soon as 2016, according to Hastings.

“The industry is very motivated around this concept of smart TVs,” Hastings said.

But Netflix has bigger problems than HBO GO in the short-term; after announcing pricing changes and talking about making drastic changes to its disc-based service earlier this year, customers decided to bail. The company lost 800,000 subscribers in the US during the third quarter. Hastings would not comment on fourth-quarter subscriber numbers, but predicted gains in 2012.

"We are very optimistic that we can put up very substantial growth next year," Hastings said.

On a side note, perhaps Netflix shouldn't worry too much about HBO GO in the short term - many of Time Warner Cable's own customers don't have access to it yet... but they do have access to Netflix.

Source: Bloomberg


Comments

Re: Netflix CEO: We Fear HBO Go

Reed Hastings is what Netflix needs to fear. His new policies have destroyed Netflix consumer base trying to get an extra buck and please investors which has caused their stock plummet.

Re: Netflix CEO: We Fear HBO Go

Agreed with the rest of you. There are maybe two shows I want to watch on HBO Go. There are literally thousands of things I want to watch on Netflix.

 

there is no comparison.

Re: Netflix CEO: We Fear HBO Go

Sounds more like a bluff to me. Or cowardice. Like a heavyweight calling out a lightweight. HuluPlus is Netflix's real problem right now, as far as streaming goes.

Re: Netflix CEO: We Fear HBO Go

I dunno, last time I looked at Hulu Plus, it took me 40 minutes of browsing to find a single movie I had even heard of before.  Their TV selection was better, but the movies seemed to be just whatever they could get without having to pay much licensing (old/indie/flops/whatever).

Re: Netflix CEO: We Fear HBO Go

Still, I doubt HBO's going to pose a threat. I think Netflix is just trying to look tough.

 
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Matthew WilsonIf you have not read http://arstechnica.com/gaming/2014/04/introducing-steam-gauge-ars-reveals-steams-most-popular-games/ you should. It is a bit stats heavy, but worth the read.04/16/2014 - 2:04pm
Matthew Wilsonthe issue is when is doesn't work it can screw over millions in new york city's case. more often than not it is better to let the free market run its course without market distortion.04/16/2014 - 9:36am
NeenekoTrue, and overdone stagnation is a problem. It is a tricky balance. It does not help that when it does work, no one notices. Most people here have benifited from rent controls and not even realized it.04/16/2014 - 9:23am
ZippyDSMleehttp://www.afterdawn.com/news/article.cfm/2014/04/15/riaa_files_civil_suit_against_megaupload04/16/2014 - 8:48am
ZippyDSMleeEither way you get stagnation as people can not afford the prices they set.04/16/2014 - 8:47am
Neenekowell, specifically it helps people already living there and hurts people who want to live there instead. As for 'way more hurt', majorities generally need less legal protection. yes it hurt more people then it helped, it was written for a minority04/16/2014 - 8:30am
MaskedPixelantehttp://torrentfreak.com/square-enix-drm-boosts-profits-and-its-here-to-stay-140415/ Square proves how incredibly out of touch they are by saying that DRM is the way of the future, and is here to stay.04/16/2014 - 8:29am
james_fudgeUnwinnable Weekly Telethon playing Metal Gear http://www.twitch.tv/rainydayletsplay04/16/2014 - 8:06am
ConsterTo be fair, there's so little left of the middle class that those numbers are skewing.04/16/2014 - 7:42am
Matthew Wilsonyes it help a sub section of the poor, but hurt both the middle and upper class. in the end way more people were hurt than helped. also, it hurt most poor people as well.04/16/2014 - 12:13am
SeanBJust goes to show what I have said for years. Your ability to have sex does not qualify you for parenthood.04/15/2014 - 9:21pm
NeenekoSo "worked" vs "failed" really comes down to who you think is more important and deserving04/15/2014 - 7:04pm
NeenekoThough I am also not sure we can say NYC failed. Rent control helped the people it was intended for and is considered a failure by the people it was designed to protect them from.04/15/2014 - 7:04pm
NeenekoIf they change the rules, demand will plummet. Though yeah, rent control probably would not help much in the SF case. I doubt anything will.04/15/2014 - 1:35pm
TheSmokeyOnline gamer accused of murdering son to keep playing - http://cnews.canoe.ca/CNEWS/Crime/2014/04/15/21604921.html04/15/2014 - 11:50am
Matthew Wilsonyup, but curent city rules do not allow for that.04/15/2014 - 11:00am
ZippyDSMleeIf SF dose not start building upwards then they will price people out of the aera.04/15/2014 - 10:59am
Matthew Wilsonthe issue rent control has it reduces supply, and in SF case they already has a supply problem. rent control ofen puts rent below cost, or below profit of selling it. rent control would not fix this issue.04/15/2014 - 10:56am
NeenekoRent control is useful in moderation, NYC took it way to far and tends to be held up as an example of them not working, but in most cases they are more subtle and positive.04/15/2014 - 10:24am
PHX CorpBeating Cancer with Video Games http://mashable.com/2014/04/14/steven-gonzalez-survivor-games/04/15/2014 - 9:21am
 

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