WHAT ARE THE TWO BUSINESS MODELS OF THESE COMPANIES?





HOW ARE THEY BECOMMING MORE SIMILLER?

Ultimately Netflix is becoming a bit more like HBO and HBO is becoming a bit more like Netflix.

WHAT ARE SOME GOOD EXAMPLES OF NETFLIX AND HBO'S ACTION TO DEVELOPE ONLINE SUBSCRIPTION?

It has pioneered the “big data” approach to online media, whereby every possible measure of enjoyment is captured, analysed and stored forever. Netflix knows every film and television show every single one of its more than one million British subscribers have ever watched and when, and whether they stuck with each until the end. It will have a better idea than any traditional broadcaster would have about whether its big investment in House of Cards was worthwhile.

Currently, the service has 6.5 million registered users, only a fraction of HBO’s total 29 million subscribers. As Netflix and Hulu both begin to roll out their own custom online-only content, it may be a smart idea for HBO to increase their market share by allowing customers to subscribe to an online-only HBO GO.

HBO Watch notes that a subscription to the premium cable service can cost between $15 and $20 a month on top of a normal cable bill. If HBO opened up their HBO GO service to non-cable suscribers, customers would expect to pay between $10 and $15 each month for the online-only service, Reuters notes. Under this model, HBO GO would be more expensive than both Netflix and Hulu Plus ($8 per month each).

WHAT ARE SOME GOOD EXAMPLES OF HOW AUDIENCE HABITS HAVE CHANGED IN THE ONLINE AGE?