> This might not cover or replace the existing subscriber base, but it would be an opportunity to bring additional customers on board at next-to zero cost. Just by shutting up and taking my money.
Except now they can no longer sell exclusive content rights to companies in each territory which means they lose a ton in license fees. So then HBO has to take over all the local marketing that each licensor was doing for them. Now, instead of collecting $1m from RomaniaTelekom with close to 100% margin, they have to set up a local office in Bucharest, contract with an ad agency, etc etc etc.
Exclusive content is a HUGE driver of consumer spend and so providers are willing to pay a TON of money for the content. Take away the exclusivity and all those big contracts go away.
Except now they can no longer sell exclusive content rights to companies in each territory which means they lose a ton in license fees. So then HBO has to take over all the local marketing that each licensor was doing for them. Now, instead of collecting $1m from RomaniaTelekom with close to 100% margin, they have to set up a local office in Bucharest, contract with an ad agency, etc etc etc.
Exclusive content is a HUGE driver of consumer spend and so providers are willing to pay a TON of money for the content. Take away the exclusivity and all those big contracts go away.