Cuban: Web Video's Failure to Launch

Cnet, Thursday, May 28, 2009 12:15 PM
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Blame Google's purchase of YouTube for the failure of the online video market to sustain itself, Mark Cuban said at the D: All Things Digital event on Wednesday. The problem, Cuban said, is that in purchasing YouTube, Google focused on ubiquity rather than making money. "This is a company that is literally subsidizing the bandwidth for the world," Cuban said, noting that it's particularly risky, too, especially if someone were ever to find a better search business model than Google.

Cuban noted that the online video industry still doesn't have any advertising standards, among other shortcomings. "I think it's a real disappointment to see where Internet video has come," he said. "YouTube has gotten so big you are not a standard unless YouTube adopts you...It's like fighting Microsoft" in the PC business, he said.

Cuban did give credit to Hulu for trying to build a money-making Internet video business. "Hulu has done some great things and they are focused on monetization," but "they have some big pockets that they have to appease."
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