(click the image above for more information from CNET.com)
Time Warner, INC. is looking to force its way into the online streaming battle with Netflix. Will they be successful or are they destined to experience the ‘Blockbuster” failures that other entertainment behemoths have experienced?
HBO has recently announced plans for a new online service called “HBO go” which will provide users with direct access to the cable giant’s movie catalog. HBO plans to offer the service to its existing customers at no cost. Yes, you read that correctly; NO additional cost. This is clearly the companies opening salvo at retaining its enormous paying customer base (currently 38 million +).
One of the major selling points in this new service from HBO/TimeWarner will be the ability to stream newer Hollywood movies. Currently Netflix offers its customers an array of online viewing options, but the vast majority are constituted of older films. HBO is currently not planning to pull its offerings, and will presumably have all of its movie library available.
As a paying subscriber myself, I am certainly all for additional services, especially when they come at no cost. As companies like Netflix manage their way into the entertainment medium, it forces the legacy companies like HBO and Blockbuster to counter with enhanced services for its customer base. As Blockbuster learned the hard way, even the most powerful companies can be brought to their knees by smaller start up companies such as Netflix, Redbox and others. HBO has to hope they are not too late and can contain the momentum.
