Rich Fiscus
2 Feb 2009 0:29
One of the biggest hurdles Netflix has faced in developing the Watch Instantly streaming video service has been a lack of available content. While the company has been able to offer thousands of titles, a lot of the more valuable content is unavailable due to licensing agreements with cable companies. They already have a partnership with Starz to give them access to additional titles, and now it looks like they may be working on a deal to do something similar with HBO.
Although there hasn't been any kind of announcement from Netflix about the possibility of a deal with HBO, company executives have always preferred not to talk about partnerships until they have actual deals in place. But that hasn't stopped them from sending out a questionnaire to subscribers to guage interest in HBO content.
The survey, which was detailed on the website Hacking Netflix, asks current subscribers if they would be interested enough in HBO content to pay an additional $10 per month for access to it. It seems like a steep price considering that you still have to provide the broadband connection and computer, set-top box, or Blu-ray player to watch.
While streaming has clearly been a key component of the continued success Netflix enjoys, ridiculous price demands from content owners and licenses is perhaps the biggest reason Netflix is the first real success story. Content providers don't seem willing to share in the cost of establishing the new markets and business models.