If you’re not on Netflix, you’re outdatedt! That applies for most of today’s content, shows and networks, but HBO seems to have no plans to stream with Neflix.
It would be amazing news if HBO would simply drop the “No” and embrace the digital future. This is not the first time HBO has denied having any plans to stream with Netflix and it’s not that surprising, given these two are acerb competitors. But Netflix CEO Reed Hasting told shareholders in a recent letter, a partnership with HBO could be possible.
Netflix posted today the report for second-quarter earnings. The company managed to recover the loss the expansion into Britain and Ireland markets brought on in the first three months of the year. It posted a $6 million profit for the second quarter and revenue that spiked 12 percent since last year to $889 million.
For the second quarter, Netflix managed to add only 530,000 new customers in the United States and is having a hard time meeting the 7 million new U.S. streaming subscribers goal for the current year. So, it’s no wonder, the Netflix CEO tried to calm down investors with a future partnership with HBO.
“While we compete for content and viewing time with HBO, it is also possible we will find opportunities to work together – just as we do with other networks” reads Hasting’s letter to the shareholders. “We’re just another network and then when you have multiple networks, they often find ways of working together” Netflix CEO added.
Reed Hasting told investors: “As for HBO, they continue to do great work with HBO GO, which is now available to most U.S. households that subscribe to the premium service”. So, with HBO giving subscribers an alternative to Netflix, it’s going to be even harder to meet that 7 million new U.S. subscribers.
Whether or not, Hasting’s letter to investors was a delicate way of asking HBO about a potential partnership, HBO was pretty straightforward about it. “We are not in discussions and have no plans to work with Netflix” said one of HBO’s spokespersons.
For the moment being, HBO is obviously the competitor with the edge. Why should it give Netflix its series at wholesale prices, when they can force them to buy full price box sets?