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6173281190_9a91bc60a0_z.jpg"> <P>Netflix didn t deliver the subscriber growth that
investors were hoping for, but hey, it managed to keep up with today s news cycle
specifically, HBO s short-on-details announcement that it will be launching a sta
ndalone streaming service next year.</P><P>CEO Reed Hastings and CFO David Wells
managed to squeeze the news into today s investor letter, where they say that HBO s
move was inevitable and sensible. The letter acknowledges that Hastings has long
portrayed HBO as Netflix s big competitors, a statement that has become more plaus
ible over time. But they also suggest that since there s not much overlap in conte
nt, many people will subscribe to both Netflix and HBO and that the services will b
oth prosper. </P><P>This was actually a subject of debate within the TechCrunch te
am this morning
after all, consumers are only going to subscribe to so many stre
aming video services before they feel like they ve got enough video and/or they ve e
xceeded their budgets. On the other hand, if you re really excited about Game of T
hrones</EM> on HBO, and you re just as excited about Orange Is The New Black</EM>
on Netflix (or, to sneak in a plug for my favorite of the Netflix Originals, BoJ
ack Horseman</EM>), there s a good chance you ll subscribe to both.</P><P>Netflix al
so addresses the competition issue at another point in the letter, noting that pe
r-member viewing and retention in the US are as strong as ever. As a result, it a
rgues that increased competition from piracy, TV Everywhere, Amazon Prime Instant
Video, Hulu, etc., wasn t a factor in its disappointing subscriber numbers.</P><P>
Anyway, here s the full comment about HBO:</P><BLOCKQUOTE readability="7"><P>Start
ing back in 2011 we started saying that HBO would be our primary long-term compe
titor, particularly for content. The competition will drive us both to be better
. It was inevitable and sensible that they would eventually offer their service
as a standalone application. Many people will subscribe to both Netflix and HBO
since we have different shows, so we think it is likely we both prosper as consu
mers move to Internet TV.</P></BLOCKQUOTE><P>photo of reed hastings via flickr/d
ylan tweney</P></P>
<p><a href="http://techcrunch.com/2014/10/15/netflix-vs-hbo/?ncid=rss" target="_
blank" rel="nofollow">Fuente Original</a></p>
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