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Howdy, I'm MG Siegler. I’m a general partner at CrunchFund and a columnist for TechCrunch. This is where I collect things.

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A Note From HBO, But Not From The Future

Jeremy Toeman responds to my letter to HBO (to let me pay for HBO Go without requiring that I pay for cable). He makes a number of solid points as to why the economics simply will not work right now.

But the keywords are “right now”.

I have no doubt that HBO is in no hurry to walk away from their cable partners who not only send them billions, but handle all the logistics (collecting the money, customer support, etc). But it would be very unwise to think that this model will continue in perpetuity.

The cable model is going to get disrupted. It may not happen next year, it may not even fully happen in five years, but it will happen. And as I said in my original post, HBO has a chance to lead this revolution instead of being run over by it. Right now, they hold the key: killer content.

If they’re actually worrying about things like not having the infrastructure to take payments or handling customer support, they may have already lost. They’re allowing themselves to be held hostage by a middle man that is not aging well (the cable companies). Again, one day he will die. And where does that leave HBO?

Scrambling to figure shit out while new competitors they never considered to be competitors eat their lunch — that’s where.

Tags tech television HBO cable

Dear HBO

First and foremost, I love your content. You’ve produced several of my favorite shows over the years, and the hits keep on coming. I’d love to watch Game of Thrones now, but I can’t. You see, the only way to get your service is to be a cable subscriber, and several months ago I cut the cord. 

The recent news that you’ve reached agreements with Cablevision and Time Warner Cable to make your iPad app, HBO Go, more widely available has plenty of people all excited. But to me it looks like a big turd sandwich. If I wanted cable, I’d pay for cable. I just want HBO, but you make it impossible.

I realize this is all about money. The cable companies send you a ton of cash and provide you with a great platform on which you are given prime billing to the elite tier customers. But the world is changing. And you need to get in front of it.

Though they’re going through a bit of a rough transformation right now, Netflix is clearly adjusting their cannons to aim right at you. In 2 years, they will be HBO — but better. Because they won’t require a goddamn bullshit cable subscription.

I’d gladly pay you upwards of $19.99 a month for direct access to HBO Go without a cable subscription. Netflix charges $7.99 a month for their streaming service right now, but thanks to your original programming, you’re worth a lot more. But Netflix original programming is coming soon, so your premium buffer won’t last forever. The time to strike is now.

If you could remove your lips from the cable company teat for a minute, you’d find hundreds of thousands — and likely millions — of customers happy to pay a premium for access to HBO Go without the cable requirement right now. That number is only going to grow. And fast.

Content is king, and you have the best content. If you do go cable-optional, a few of the cable companies may try to boycott you. But the ensuing customer relations shitstorm will only prove your value and will hasten the arrival of the post-cable world. You can lead this revolution.

So please HBO, I beg you, take control. Pre-empt Netflix and rise against big cable. Fulfill your destiny. Or I’m going to have to call on ESPN.

Update: Yes, Time Warner owns HBO, but…

Tags cable hbo netflix tech television on

The Cable Xbox

So if I’m reading this correctly, Xbox will now be a cable box?

That’s cool, I guess — the interface is much better than any cable box out there (which isn’t really saying anything as cable boxes are huge pieces of shit across the board). But it will still require a full-on cable contract, where you pay for tons of crap you don’t want. 

I’d prefer a bit more thinking outside of the box, as it were.

Tags tech microsoft xbox cable