In reply to Chuck.

Let's start with one puzzle. Why are you paying HBO $240 a year to get to see True Blood and a couple of episodes of Game of Thrones. If you think that's genuinely what it's 'worth' to see those shows, I think that you are—bluntly—wrong. I'm guessing a lot of other people out there are NOT prepared to pay $240 a year to get to see True Blood, and that—frankly—many of those *would* be prepared to pay $40-60 to get to see the Season via iTunes when it's broadcast. So you need (say) eight of those people to download for every one who buys HBO. That seems *entirely* plausible to me, frankly. Eight people who are prepared to pay $60 to watch True Blood for every one who is prepared to pay $240.

Is your argument REALLY that people should be paying $240 a year for True Blood? Because that just doesn't sound in any way plausible. Not one bit.

Moreover, frankly, the world changes, and people's business models have to change too. If all the other broadcasters think that they can make money by selling on iTunes the day after broadcast for a certain amount of money, then of COURSE expectations will be set for shows on HBO to be similar. And people will justifiably start asking 'why am I paying so much for this' or 'why can't I get it at the same time as I get all my other shows'. And one way or another, whether it's moral or reasonable or not, people are going to start moving to either other shows or they're going to torrent it. Because it's easy and it works.

Is that right? No. Is it basically inevitable? Yes. Does that mean that their existing business model might be under threat? Yes. Is that fair? Bluntly, that's an irrelevant question.

And meanwhile, a whole bunch of people actually are moving away from cable completely, because it's an expensive standing cost each month that they don't need to pay and they don't want to pay. They want to own the shows and be able to watch them when they want to. Again, if HBO's business model doesn't stand up under those circumstances, and other people's models do, and if HBO isn't prepared to find some way to change, then—and surely this is obvious—HBO will fail.

Again, there's a difference between what is fair and reasonable and what is going to happen. We're in a transitional period here. Obviously the possible viewers buying things from iTunes is likely to grow massively over the next ten years. And the desire to be able to buy bespoke, just the things you want, to watch when and how you want, is not going to evaporate. So, I'm afraid, one way or another, HBO are going to have to find some way to adjust to it.