Must read: More on HBO direct
The guys at Tech Dirt have smartly analyzed HBO's decision to not offer a direct to consumer model. And of course, they nail their analysis. I won't try to summarize the entire article here (it's short - just read it), but it offers a real world example of how a TV industry incumbent is putting short term profits over long term viability. Tech Dirt correctly cites The Innovator's Dilemma in explaining how HBO is putting themselves in a precarious situation by not cannibalizing their current revenue sources for new ones that are only starting to appear. It's a tough decision, but the TV players that do it will the be the ones that succeed in the long run. Innovate or die.