has found an ideal partner in
Amazon to stream its older shows
– and the duo’s tag-teaming is certainly a blow to Netflix.
But to understand why the deal is a smart move for HBO, it’s important to look at what the deal doesn’t include. First, it’s only for original series, miniseries and specials that are at least three years old. In industry lingo, it’s a “library deal.” That means for access to the most recent shows on HBO, you still need to purchase a subscription to HBO through a pay-TV provider.
Another carve-out: “
” will never be coming to
More Top Picks Best Floor Lamps For Reading
Prime Instant Video, at least under the current agreement. HBO has decided to retain that for itself, given the immense interest in the franchise and the prospect that “GoT” will continue on for several more seasons.
SEE ALSO: HBO Cuts Exclusive Licensing Deal with Amazon
Also excluded are three older shows that are tied up in U.S. syndication deals: “Sex and the City,” “Entourage” and “Curb Your Enthusiasm.”
And there’s more. The deal also excludes new and future shows on HBO — so that means “True Detective” and “Silicon Valley,” for example, are not ever going to be coming to Amazon Prime Instant Video either. (Again, under the terms of the present deal, which could be renewed at some point.)
HBO had once said that it would never license its programming to a subscription VOD service. So what changed? It’s a win-win for the cabler in the way it has structured the deal: For everything new (or even recent), you still have to pay for HBO. By licensing older shows to Amazon, HBO gets a nice check from Jeff Bezos — plus, it will benefit from the exposure of HBO’s original series to consumers who may decide to subscribe to HBO for the freshest stuff (or after they realize that, say, “Game of Thrones” is not going to be hitting the Amazon queue).
So make no mistake, HBO’s deal with Amazon is not really the cord-cutter’s dream. Nor will it do anything to depress
the rampant piracy of HBO programming
by those unwilling (or unable) to pay for the premium service. But it does provide a way for HBO to monetize older shows while preserving its core biz, and — perhaps just as important — extend and promote its brand with a next-generation video player.
2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC