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Funding Strands

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by

Archie Bean

on 8 July 2014

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Transcript of Funding Strands

Funding Strands
Comparison
What are they?

HBO (Home Box Office) is an American subscription network that produces, broadcasts and releases original television shows and films. HBO has been up and running since 1972. HBO is available on a multitude of devices. HBO produces/has produced many television series such as 'Game of Thrones', 'The Soprano's, 'Boardwalk Empire' and 'True Detective'.

It is said that to produce a single episode of 'Game of Thrones' it costs around $6 million.

So where does HBO get that money from?


HBO gets it's money from:-
.Subscribers as it is an individual network
.Companies like Sky that have paid for the rights to show certain TV shows produced by HBO
.Box Sets. As well as screening episodes of shows weekly on TV, it also releases box sets of those shows, once they have finished airing for the season.
.Other subscription channels like Now TV and Amazon Instant Video, that have paid for the rights to show programmes such as 'Game of Thrones'
.Advertisement, with frequent adverts promoting HBO shows on Sky, Now TV and other companies, it receives the attention of new customers everyday.


Comparison
What are they?

Netflix is an American streaming service, gives viewers the availability to stream a film, TV show or documentary at any time of their choosing, as well as being an online business for DVD purchases. Netflix has been up and running since 1997. Netflix is available on a multitude of devices. Netflix provides different films and shows to different regions, with Britain having shows as 'Breaking Bad', 'Dexter', 'House of Cards', 'Homeland' and many BBC shows available to them.


So where does Netflix make it money?

Netflix makes it money by:-

.It's DVD and Blu-Ray rental business.
.Streaming exclusive shows such as 'House of Cards'
.Appealing to customers; in 2007, Netflix had only 30% of it's library made up from newly released films, whereas video rental stores had 70% newly released films. This gives a stronger variety to the customer.
.Engrossing it's customers. It offers a free month trial to attract customers and a certain figure of which will decide to purchase the whole package.
.Netflix's original rival 'Blockbuster' as a DVD delivery service, shut down, meaning that Netlfix was running comfortably in the DVD rental service.
.Advertisement, with frequent adverts promoting HBO shows on Sky, Now TV and other companies, it receives the attention of new customers everyday.
Contrasting Netflix and HBO
Similarities
Differences
.Produce original shows
.Subscription businesses
.Available on multiple platforms
.Frequent advertisement
.Films, TV shows and Documentaries
.HBO allows other companies to buy the rights to show it's programmes
.HBO can release it's programmes on box-sets
.Netflix was originally a DVD rental service
.Netflix offers a free month trial
HBO explored
Netflix explored
.Netflix has earned £32 million in profit in the first quarter of 2014
.Global membership of 48 million
.63% of Americans use Netflix to stream TV
.900 Employees working at corporate HQ
.By the end of 2001, Netflix had 456,000 subscribers
.In 2002, Netflix went public


.Global membership of 130 million
.'Game of Thrones' is the most pirated program ever
.HBO added 2 million subscribers in 2013
.Along with Showtime, and other companies, their was a 6% decline from 38% to 32% for US households with premium cable subscriptions over 18 months (compared to Netflix's 4% increase from 23% to 27%

HBO timeline
Netflix timeline
1997 - Netflix founded as online movie rental business
1999 - Netflix becomes a subscription service
2002 - 857,000 members (up 88% in one year)
2003 - 1.4 million members
2004 - 2.6 million members
2005 - 4.2 million members
2006 - 6.3 million members
2007 - streaming available (7.5 million members)
2008 - Netflix available on Xbox 360, Blur-Ray, apple and TV set top boxes (9.4 million members)
2009 - Netflix available on Playstation 3, and various internet connected devices (12.3 million members)
2010 - Netflix available on Nintendo Wii, iPad, iPhone, iPod touch; launches in Canada (20 million members)
2011 - Launches in Latin America and Caribbean
2012 - Launches in UK, Ireland (30+million members)
2013 - Launches in Holland (40+million members)

1972 - HBO is launched
1973 - HBO is aquired by Time Life
1981 - The channel becomes a 24 hours a day, 7 days a week service
1983 - HBO broadcasts it's first made for TV film
1997 - HBO broadcasts it's first original drama series
(1998 - 2002) shows such as 'The Soprano's', 'Sex and the City', 'Band of Brothers', 'Curb Your Enthusiasm' and 'The Wire' air
2010 - HBO agrees a broadcasting agreement with Sky, to have shows air in the UK, and on the Sky Atlantic channel, after the success of 'Boradwalk Empire's' first season
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