Matthew Ball @ballmatthew Venture investor, strategist, essayist, that guy on Twitter. Prev. Head of Strategy @AmazonStudios, ex-Otter Media, @MediaREDEF. 🇨🇦 Jul. 09, 2019 1 min read

Building around HBO & offering it at a very marginal upcharge is absolutely the right strategy (if you want scale in engagement, data + subs)

Challenge is if that's enough ARPU to offset licensing rev + originals investment

Success prob needs subs to add many other ATT services

FWIW - I think best strategy was to still give HBO most of this content (eg FilmStruck library), far more money for originals, and select non-HBO library (eg Friends)

Have HBO smaller tonnage than Netflix, but still with many more subs than HBO today, and hyper profitable

I wrote about this all here (including why HBO needed to change regardless of AT&T, was already in the process of doing so, and why it could do this while remaining HBO) 

Relatedly, I think most are unfairly critical of whether a "telephone company" can make good content.

No one thought a digital logistics company or DVD shipper could, and they didn't start with hundreds of content specialists already at work, nor a content pipeline

You can follow @ballmatthew.


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