Cuban Rips YouTube (and Rightly So)
June 17th, 2008 by Alec McNayrPosted in Advertising, Business, Content, Strategy |I wrote last week about how YouTube is releasing some new tools for creators, and this week, Mark Cuban ups the ante.
He rips the online video giant in his latest Blog Maverick post. His primary complaint is that, while YouTube has huge traffic numbers, it can only sell ads against a small percentage of its hosted content, which makes for an unsustainable business model.
He praises Hulu which has a much smaller audience, but clearly a collection of higher-level content, and a business model that allows for it to monetize 100% of its content.
“Youtube hides behind the Digital Millennium Copyright Act. Hulu is a media site that presents videos with advertising. It can do whatever it wants. Youtube ts a hosting service. Its not allowed to know what videos are uploaded by users and its not allowed to generate revenue against those videos. It can only sell advertising around videos it has licenses to.”
