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Netflix Surpasses HBO Subscriptions

By James DeRuvo (doddleNEWS)

Back in 2007, when Netflix was getting ready to move beyond their profitable rent-by-mail DVD business and get into streaming video, they were not only blazing a trail and creating ripples that are still felt today, but they were also a kind of David to HBOs Goliath. Back then, Time Warner’s pay TV service executives chuckled at the ‘cute’ notion of internet video streaming taking over pay TV.

But in just four short years, in what amounts to a 21st century digital “Game of Thrones,” Netflix has announced their subscriber base has surpassed HBO, as cord cutters look to dump not only their movie service, but their cable services altogether. And Netflix’s original series lineup seems to be leading the charge. And not even the Lannister’s many Emmys can stop them.

 

"It's a little bit like the Albanian army going to take over the world," Time Warner boss Jeff Bewkes, 2010

"Minor milestone," Netflix CEO Reed Hastings wrote on the Netflix Facebook page, "last quarter we passed HBO in subscriber revenue ($1.146B vs $1.141B). They still kick our ass in profits and Emmys, but we are making progress." What’s the key? Well, the $7.99 a month service fee doesn’t hurt. Depending on who you get your HBO service through, you could be paying anywhere from two to almost three times as much as a Netflix membership. Add onto that the cost of your monthly cable bill, and it certainly can add up. And since users already pay for monthly broadband internet service, why should they have to pay extra for access to payTV?

HBO has tried to stem the tide with quality programming like Game of Thrones, Boardwalk Empire, and True Blood. But the latter two are winding down. HBO has been giving users HBO to Go as an option to stream their service (with an HBO TV subscription). But the bottom line is, that with Netflix winning Emmys for House of Cards, and with spending millions for series like Orange is the New Black, Arrested Development, and upcoming series like Marco Polo, Sense8 and Disney‘s Marvel series line-up, users are beginning to think that they can wait for Game of Thrones to end up online or at least Blu-ray.

Either way, Jeff Bewkes and every other pay TV executive have cause to be very nervous. And that explains why they’re spending millions to fight Net Neutrality, and are engaging in extortion scams in order to forestall the inevitable. But inevitable it is, as the world is looking more to the web for their content, and less to cable. Kevin Spacey sees it, why can’t they? Well, you know the an$wer to that.

Hat Tip – BGR

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