Netflix Leadership Open To Working With HBO GO, Unthreatened By Verizon Redbox

Billy Gallagher is a writer for TechCrunch. He is also the president and editor in chief of The Stanford Daily. Billy previously worked at The Stanford Daily for two volumes as a managing editor of news. He has also worked in sports and staff development at The Daily. In March of 2012 the Friends of The Stanford Daily awarded him... ? Learn More

Buried a few pages into the Netflix earnings report was an open door to a very interesting possibility: Netflix and HBO GO collaboration.

“As for HBO, they continue to do great work with HBO GO, which is now available to most US households that subscribe to the premium service,” the report read. “While we compete for content and viewing time with HBO, it is also possible we will find opportunities to work together – just as we do with other networks.”

Now, this is a far cry from announcing a partnership, but it would be a game-changing collaboration if it happened.  Netflix has over 24 million streaming members in the U.S. HBO GO has over 29 million subscribers. A little over a month ago, our own Ryan Lawler asked how much people would be willing to pay for a standalone HBO GO.

What would they pay for joint access to Netflix and HBO GO?

While Netflix is enamored with HBO GO, the feelings may not be mutual. HBO GO is owned by Time Warner, and CEO Jeffrey Bewkes has publicly disparaged Netflix, likening it to the “Albanian army.” A year later, Bewkes commented that Netflix and other distribution services “can actually add value to all of us.” Who knows what he thinks now.

In the earnings report, Netflix executives seemed unfazed by non-HBO competitors, noting that Hulu Plus and Amazon Prime Instant Video have not yet gained “meaningful traction relative to our viewing hours.” As for the soon-to-launch RedBox Instant by Verizon, the Netflix report commented that they “will face a big challenge to break into the top 3 of subscription streaming services.”

The challenge will be even greater if Netflix and HBO GO have any sort of partnership.

Update: HBO Senior VP of Corporate Affairs Jeff Cusson tells me, ”HBO is not in discussions and has no plans to work with Netflix.” Which, of course, raises the question: why would Netflix praise HBO and mention the possibility of working together in a shareholders letter if they aren’t even having discussions with HBO?

With more than 23.6 million members in the United States and Canada, Netflix, Inc. is the world’s leading Internet subscription service for enjoying movies and TV shows. For $7.99 a month, Netflix members in the U.S. can instantly watch unlimited movies and TV episodes streaming right to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes. In Canada, streaming unlimited movies and TV shows from Netflix is available for $7.99 a month. There are...

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Redbox Automated Retail, LLC, a wholly-owned subsidiary of Coinstar, Inc. (NASDAQ: CSTR), offers new release DVD rentals through its network of conveniently located, self-service kiosks. Redbox is available at more than 24,000 locations nationwide, including select McDonald’s restaurants, leading grocery and convenience stores, and Wal-Mart and Walgreens locations in select markets. For more information, visit www.redbox.com.

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Verizon Communications Inc. delivers broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless operates America’s largest wireless network that serves nearly 102 million customers nationwide. Verizon’s Wireline operations include Verizon Business and Verizon Telecom, which brings customers converged communications, information and entertainment services over Verizon’s fiber-optic network.

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