Trending

Netflix CEO Reed Hastings brags on Facebook that the Netflix’s subscription revenue surpassed HBO’s for the first time last quarter. Netflix’s subscriber revenue in the second quarter reached $1.146 billion compared to HBO’s $1.141 billion, but the online streaming company still has a long way to go before catching up with the premium cable channel. (Photo: Reuters/Mike Blake)

Adding more fuel to the Netflix vs. HBO debate, Netflix CEO Reed Hastings bragged on Facebook yesterday that Netflix's subscription revenue surpassed HBO's for the first time last quarter. Netflix's subscriber revenue in the second quarter reached $1.146 billion compared to HBO's $1.141 billion, but the online streaming company still has a long way to go before catching up with the premium cable channel. "They still kick our ass in profits and Emmy's, but we are making progress," Hastings wrote in his post.

While comparing Netflix vs. HBO might be like comparing apples to oranges, Netflix obviously sees itself as a worthy HBO competitor. "HBO rocks, and we are honored to be in the same league," Hastings wrote, adding that he loved "Silicon Valley" and it "hit a little close to home." But while Netflix may have surpassed HBO in subscriber revenue last quarter and number of paying subscribers in the U.S. last year, Netflix makes way less profit than HBO overall.

Quartz reported that Netflix made $71 million in profit last quarter, while HBO brought in $548 million in profit for its parent company Time Warner last quarter. HBO also generates revenue from licensing its old shows, bringing in an additional $272 million in content revenue last quarter. That amounts includes the deal struck between HBO and Amazon that allows the Netflix rival to stream old HBO shows.

But the mismatched rivalry between Netflix and Amazon goes beyond profits. HBO has a long history of producing quality must-watch shows but Netflix has just begun dabbling in original programming. Netflix might get a lot of attention during Awards season but HBO has won 101 Globe Globes and 463 Emmys, compared to Netflix's one Golden Globe win and three Emmys.

Most Netflix and HBO comparisons come from Netflix, with the web upstart viewing HBO as its biggest competitor in the long run. Ted Sarandos, head of content at Netflix said in 2013, "The goal is to become HBO faster than HBO can become us." Last year Hastings joked that HBO CEO Richard Pleper's password for HBO Go was "Netflix bitch."

Netflix might have a long way to go to compete with HBO in terms of content, could HBO learn something from Netflix? HBO appears to be flirting with the idea of going cable-less. Perhaps Netflix's continued success might inspire HBO to cut the cable cord once and for all.  

Do you prefer Netflix or HBO? Let us know in the comments.