Another Link in the Broadband Video Chain
HBO has actually been in the online content game for quite some time. HBO on Broadband has been available in select test markets since 2008, offering subscribers a way to access HBO content online via streaming video and download.
In December, Comcast's xfinity TV offered Comcast subscribers who also subscribe to HBO, Starz or Cinemax access to content from those premium channels via Comcast's Fancast portal. This is essentially the same content available via On Demand, and users can stream it in "up to HD" quality. I've been using this service for the last few months -- it's pretty darn good.
HBO GO, which is a separate initiative, offers up a similar idea. You can browse the HBO GO website for movies, documentaries, original series and more, and choose content to watch or add to watch lists. It's very much like Hulu.
Right now, the content doesn't appear to differ much from the offerings on Fancast (in fact, if you try to log in as a Comcast user you are redirected to Fancast), but in the future, HBO plans to offer "three times the content of what's on HBO On Demand today," according to a quote from The New York Times.
Verizon Customers First... For Now
Although Verizon FiOS customers are the first to gain access to this portal (again, Comcast users can access what appears to be an identical content selection via xfinity TV), there are clearly plans for it to open up to other cable operators and their HBO subscribers.
This makes a lot of sense, as consolidating HBO's existing online strategies will make for a more unifying experience. We hope that Comcast, for instance, will integrate into HBO GO soon.
Whether or not HBO will ever offer consumers an option to subscribe to HBO online only (bypassing cable altogether) is unclear. HBO clearly benefits from the packaging deals that the cable companies put together (and in turn, customers can get a good deal on multiple pay channels) and bypassing cable operators would likely mean charging a higher rate for subscribers.
The Future of Pay TV?
We see online access as well as on-air broadcasts as the future of television -- and pay television in particular. Although Ben argued against the HBO GO subscriber-only method yesterday, suggesting a Netflix or Hulu-esque approach, HBO is one of the rare cable networks (and even television networks) with original first-run content that subscribers are willing to pay for.
Must-see original programming is what drives HBO subscribers -- providing online access is a perk that will make people more inclined to tune in, but it's the programming that is the big driver.
For instance, during my freshmen year of college, my university's apartments were only equipped with basic cable. When Sex and the City returned to the air that January, I made sure to call and set up a separate HBO account for my dorm. The show -- and the network -- was worth it.
Offering easy online access to content might even offer an incentive for HBO to gain new subscribers -- but this seems to be more of a recognition of the importance of digital, and adding that as an option to overall offerings, rather than trying another model. Whether or not the model itself needs to shift will be more clear in the future.