HBO Now: Opening the Floodgates for Direct-to-Consumer Streaming Services
The HBO GO and Crackle examples show how content producers can avoid cannibalization of revenues from an established customer base: Avoid going direct, or go direct with lower quality content. But if you don’t go direct, you may forgo opportunities for customer acquisition and customer data collection. Ultimately, HBO’s leap of faith to go direct may succeed because HBO has prime content to attract cord-cutters or cord-nevers who don’t value pay-TV subscriptions, validating the old adage, “content is king.” – Nelson Granados, Forbes
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