Monday, May 10, 2010

Mark Cuban Declares Netflix is Doomed to Fail

Mark Cuban is the eccentric owner of the Dallas Mavericks and was an early pioneer in HD television programming.  One of Mark's recent blog posts, entitled "The future of TV ... is TV," got the attention of many observers, who sought to debunk his contention that VOD (video on demand) services from cable operators would become the primary means by which we consume digital media in the future. Cuban's critics site the growing success story of Netflix's digital distribution model, as well as the 12 million hours of March Madness video consumed via CBS' web portal, in arguing that in fact web streaming is the wave of the future.

Never one to shy away from a good fight, Mark's response tackles Netflix head on, and points out that the company's rapid growth is about to start working against it, with movie studios and other content providers likely to jack up prices and demand further concessions from the streaming service as it turns into a real competitor to cable companies.
According to Cuban, Netflix is presently getting its content at prices that are unsustainable, and his prediction is that content owners will seek bigger concessions, which will lead to Netflix passing costs on to the consumers and losing out to cable operators.  Netflix RIP.
Read more at CNET.

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