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Fb All Access Case Study

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HBO and CBS introduced the HBO Now and CBS All Access to add more customers. HBO mentions in the Comcast Corporation Harvard Business School article there are approximately 10 to 15 million cable TV households that they could persuade to try HBO with the OTT service. HBO also believes they can do a better job marketing their product themselves rather than relying on the cable operators. It also made financial sense for HBO. When selling their product through Comcast consumers paid Comcast $15 per month for a subscription, but HBO only received $7.77 per subscription. I assume this is the same deal they had with other cable providers, since through my cable service, Charter, HBO costs the same $15 monthly fee. CBS All Access gives other options for CBS to market its content beside conventional TV. They are trying to stay with the changes in technology, recognizing …show more content…
They are built for this type of service. Customers are already watching series similar to what they have to offer through other apps such as Netflix and Amazon. Additionally, some of the key content CBS has to offer isn’t available through CBS All Access. It offers some live sports, but not others. For example, they feature the NCAA Men’s basketball tournament games annually in March, but CBS All Access doesn’t include the CBS NFL games CBS due to licensing limitations. Also, the newer shows on CBS All Access include ads, which will be a big deterrent. Customers are purchasing these OTT services to avoid commercials. The market will be more attracted and receptive to the HBO Now app versus the CBS app. The CBS All Access app just has too many idiosyncrasies and strings attached to be successful at this point. Additionally, reading the Comcast article was the first time I had heard of the CBS All Access app, concerning me how well they have marketed this product. I was aware of the new HBO app, which obviously received more press than the CBS

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