Cuban Warns of Online a la Carte

By Sergio Published on .

On his blog, billionaire entrepreneur Mark Cuban says the popularity of Web video will lead the industry to face the same challenges as TV, citing a report from Bernstein Research's Craig Moffett. According to Moffett, online video revenue decreases to one-eighth the amount of TV revenue when taking into consideration the drop in advertising time (from eight minutes to two) and the impressions made. Cuban also agrees with Moffett's assertions that putting broadcast content on the Web, effectively creating a la carte programming, is detrimental to content creators by allowing users to not only select their preferred networks, but also shows and clips, because it decreases revenue further.
-Sergio Ibarra
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