Mark Cuban is a leader in thinking about the future of media. No one with more money is more open to challenging the existing paradigm. He knows what consumers want before they do, maybe because he is a consumer (though I have no idea how he could have time to be one).
His recent post about the issues that new media faces and internet TV in comparison to the two other businesses that have been decimated by the new distribution methods already (music, news). I highly recommend it. I want to say that he agrees 100% with what I've been writing recently. I have been advocating for the cablecos who already control the pipes to take advantage of their monopoly on delivery and get the on demand content to a higher level and basically shut down all of the upstart web companies (though I love them so much). However, he raises issues I haven't gotten to yet, so definitely give it a read.
Here the main argument against internet TV:
The path of least resistance to get TV, is turning on the TV. It works. It works fast. It’s reliable. The product is consistent and equal for everyone. It is predictable. The best content is available first on TV. The same can not be said for internet delivered TV. In fact, its the opposite. You have to work to get your internet TV to work. Which site has which content changes. Which content is actually available changes. Internet TV quality is not consistent from usage to usage. Internet TV requires upgrades to software to stay compatible which creates work (your next flash/silverlight/quicktime upgrade is when ?). The experience is not consistent from website to website. So every time you want to sample something new, you never really know what to expect. TV is the no work platform relative to Internet TV
I think his definition of Internet TV is too narrow. Based on his narrow definition, he is definitely right. A lot of the advantage traditional TV has is due to legacy content partnerships based on the distribution monopolies that cablecos had. There is no reason it has to stay that way.
However, cablecos should be upgrading the software (and remotes) on the set-top boxes they rent. As you know, I think that's the way to crush internet video startups, grab new media ad dollars, and justify their new emphasis on broadband pricing tiers (or other price increases). To me, his arguments in favor of cablecos dominating are the same as why an internet company would dominate in the absence of a cableco pricing per byte (which is probably why Hulu has seen such impressive growth). Sure, the cablecos could do it, but that doesn't mean the right startup isn't already there (e.g., TiVo or boxee). There should be a lot of OS/interface options to choose from, and they all should just work.
And, frankly, my cable (from Time Warner Cable) is often not working. My HD channels will go out, or onDemand won't work. And, the choices on any channel are constantly changing just like they do on the web. Further, the argument that 'which site has which content changes' is just as true if you replace site with channel. So, regular TV is just as frustrating as Internet TV.
And, while his argument for/against a la carte pricing may seem slightly insane today. It isn't. There is no reason to bundle shows together on a network. That is an artifact of a legacy distribution method. If we had to buy individual groups of television shows like we buy tickets to sporting events, we would not buy tickets to see Nets vs. Bucks when, for the same price, we could buy Cavaliers vs. Lakers. But, the way ABC chooses the Sunday Double Header shows that people will pay for good content (even if they just have to pay attention).
He ends with this:
In order to be sustainable as a platform, there has to be a way to pay for it. TV is winning this battle and by all appearances is advancing further, faster in a more standardized way than Internet Video. Hard to believe, but you need to ask yourself “Who would you rather depend on for open platforms and standards for advertising, google or cable/satellite/telcos”.He is right, of course. That cable/satellite/telcos are more likely to make this happen, but I think that consumers don't want Internet Video. They want video on demand. Right now, the internet does a better job of providing options/selection, even if you don't get the benefit of the big screen TV.
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