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Mark Cuban Predicts Netflix Fall |
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Tuesday, 15 June 2010 |
To name Mark Cuban eccentric would be akin to describing the ocean as moist, but what's not so often acknowledged in regards to the Dallas Mavericks owner is the sharp mind and industrial nous which have gotten him to the position of hiring and firing millionaire ball players. One of Mark's recent weblog posts, entitled "The future of TV ... is TV," acquired the attention of NewTeeVee, who sought to debunk his competition that VOD (video on demand) providers from cable operators would turn into the first means by which we consume digital media within the future. They cite the growing success story of Netflix's digital distribution model, as well as the 12 million hours of March Madness video consumed via CBS' net portal, in arguing that net streaming is indeed the good new hotness.
Mark's response tackles Netflix head on, and points out that the company's rapid progress is about to begin working against it, with film studios and different content material suppliers more likely to jack up costs and demand additional concessions from the streaming service because it turns into a real competitor to cable companies. Based on him, Netflix is presently getting its content at prices which can be unsustainable, and his prognostication is that content homeowners in search of larger levies -- together with the enlargement of VOD choice, which he sees as foolproof compared to the overwhelming complexity that net streaming entails -- will result in Netflix passing costs on to the customers and losing out to cable operators. Regardless of whether or not you agree with him, the entire alternate is nicely price a read. Use the links below to get filled in.
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