The Video Revolution has Arrived to Cable
Almost a year ago Time Warner CEO Jeff Bewkes was quoted saying "Time Warner will never offer HBO Go as a standalone streaming service because it's not what people want," but today HBO CEO Richard Plepler is said to be considering offering HBO Go as an online streaming service for customers who don't subscribe to the cable service.
This move would mirror the HBO Nordic service in Europe, partnering with broadband internet providers, to provide the content as part of their internet package. While HBO is still a long way from being available to everyone with an internet connection, the move indicates a revolutionary shift mindsets of HBO and owner Time Warner, which OneScreen predicted would happen six months ago in its article "Defying the Gravity of Cable Giants: HBO Nordic AB and Its Implications":
Jeff Bewkes’ statement will likely evolve over time. Nielsen data shows a 22.8% increase in cord-cutters over the past year alone and flat cable subscriber growth in 2011. In order to stay competitive and build viewership, those publishing content to the end-users must embrace the evolving ways those audiences consume content by innovating beyond the traditional models.
The video revolution is already well underway and even entrenched traditional models are not immune. Having the ability to watch content where, when, and how they want is something audiences not only want, but expect. Yes, HBO and Time Warner will have to find a way to make such a move profitable as they rely "on large financial support from cable and satellite TV partners," but ignoring viewing trends would be equally unprofitable. Traditional broadcast and cable subscriptions will not go away, but become a part of a much larger mix of options audiences have for viewing video. The companies that learn to make their content available to audiences in as many ways as possible will prove the most successful in the new era of television.