It was mid-2016 when HBO bought more than a half of all the shares from the Time Warner Cable Inc (NYSE:TWC). The reason behind this is so obvious because this move has without doubt expressed its goals silently. Think about movie sharing, sales and distribution; the first thing that comes to mind is the use of digital video disks. Over the years, Time Warner has been producing movies and distributing those using old channels such as selling of disks through the internet and physical deliveries.
Current Trends in Movies Production
Movie production industry has adopted new technologies crucial during production but the distribution of the products has lagged behind. This has created a new opportunity for other dynamic firms to accrue from it. Netflix, Inc. (NASDAQ:NFLX) has over came forward with the aim of utilizing the opportunity by simply applying technology with the aim of reaching diverse markets all over the world. With such companies as Netflix, it has been possible for customers all over the world to access a variety of entertainment and educational products through Netflix internet platforms.
Inevitable Strategies to Counter Competition
In a move to counter the possible loss of markets, HBO has moved in with new strategies. HBO, being in collaboration with Times Warner has facilitated a new way of streaming videos from the internet just like what Netflix provides. This is a smart move where a company does or copies what other firms do with the aim of enhancing its sustainability as well as existence.
With the introduction of HBO, the NASDAQ stocks; where all trading companies are listed, has shown a tremendous improvement in its profit shares. If we estimate, there is a probability that HBO will take over 90% of all the available markets by the end of the year 2018. This estimates can be attributed to the idea that HBO is an asset by Times Warner and on the other hand, Times Warner produces products which can be restricted to distribution by HBO. This will be a smart move of creating a monopoly firm through barring other potential firms from entering the shared market. This answers the question whether or not HBO is a tool for countering Netflix.