Amazon's Deal With HBO Leapfrogs Streaming Rivals

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April 23 (Bloomberg) -- Amazon will be the first Internet-TV provider to stream HBO shows—if not new ones—by offering them on Instant Video and its Fire TV device. Jon Erlichman and Alex Sherman explain what it may mean for Netflix and Amazon's other streaming rivals on Bloomberg Television's "Street Smart." (Source: Bloomberg)

I think this is an interesting towards netflix.

The folks at hbo would like to position this as a new version of what they have always done.

Take previous seasons of their content and find new homes for it and get paid for it.

They have done it with channels like tbs and a any, but, on -- and a and e, but, on come on.

It means something.

This is old material.

Is it really going to be that successful?

You could ask the same question of netflix a few years ago.

That was old material, too.

How much of a punch is this to the pay-tv operators?

Before you could not get any hbo content unless you are a cable subscriber.

This is the first time that hbo has gotten out of that box.

We will not give you the new stuff.

This is such tricky waters.

Hbo gets paid so much money by the cable operators to stay in that world so that they could say to the cable customer, pay little bit more and you get hbo.

It is almost like they are paying hbo to stay in that world wall netflix is available outside of that world.

If you are hbo, you know so many people want to watch your stuff.

That is why they launched hbo go.

Amazon comes into the picture and says, what if we take some of the older stuff?

How can you say no to that?

It is a bet by hbo that the quality of hbo go is not going to decrease in the minds of customers.

They feel enough people want new hbo content that this can be an incremental step.

Only to the customer is willing to cancel cable to watch three seasons old material.

Hbo thinks not many and they are probably right.

Comcast potentially streaming their content.

Dish.

They would come into a scenario and stream bundles of online programming and put it online.

We reported yesterday that they are looking at summer release for this bundle of packaging, which would include espn.

They already struck a deal with disney to include espn.

Now they are talking to cbs, time warner, trying to get their content into this bundle with a target of late summer to offer some product for about $30 a month.

Do you think it will succeed?

Dish is more willing than most to try new stuff.

The truth is we spend a lot of time this week talking about aer eo.

Let's take a hypothetical situation that you have amazon video, you have netflix, and you have area ereo, do you really need to be paying dish?

It is not just dish, it as directv, at&t. everybody is thinking about this stuff.

A lot of these companies used to be one in the same.

Time warner used to be the same company as time warner cable.

The content and distribution were one.

Now that time warner is a different company than time warner cable and there has been a bifurcation between content and distributor -- a few years ago, when they were one company, it they would have been unlikely to do a deal like the amazon deal where they are prodding people away toward getting pay-tv.

My head hurt.

I just want to watch tv.

It is changing so fast.

Thank you so much for breaking it down.

It is not just hbo.

This text has been automatically generated. It may not be 100% accurate.

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