The Wrap reported that HBO will no longer provide Netflix with DVDs of HBO programs at a discount. As a result, Netflix will need to look to other distributors for HBO DVDs. According to The Wrap, HBO currently has a distribution agreement with Netflix that expires this year and will not be renewed. However, Netflix vows to continue providing HBO DVDs to its customers.
Netflix is a thorn in HBO’s side as it has become an alternative to subscription TV. And to make matters worse, Netflix has been acquiring original programs. For example, “Lilyhammer,” an original series starring Steve Van Zandt, will be available this February. More Netflix exclusives such as “House of Cards,” starring Kevin Spacey, and new episodes of “Arrested Development” are on the way. As The Wrap notes, HBO is responding by refusing to license shows to Netflix. According to the article, HBO is the only premium cable channel that does not allow Netflix to stream their content. HBO’s refusal to distribute DVDs to Netflix is just another shot fired in this battle.
I can certainly see that HBO does not want to allow Netflix to stream their content because HBO created HBO GO. I have been using HBO GO for a while now because DISH was the first TV provider to offer this. I also use DISH’s Blockbuster Movie Pass for other titles to stream and to rent DVD’s, Blu-ray’s and video games for $10 a month so I have had no use for Netflix. Considering that last year Netflix made many changes that angered their subscribers including me at the time, Netflix may find that they lose more subscribers this year since they are losing agreements with HBO and STARZ. With DISH still offering free 3-month trials of the Blockbuster Movie Pass and for those with HBO subscriptions, HBO GO as a free add-on, Netflix is certainly bound to lose more subscribers this year.