As my friend Mark Evans points out, billionaire sports-team owner and media mogul Mark Cuban is often a refreshing blast of sanity amidst the hype and hoopla surrounding Web 2.0 and Internet business models in general, but his recent diatribe on YouTube and how only a moron would buy it is a little off the mark, I think (pardon the pun).
I wonder what someone like Mark might have said about a little Internet venture called Broadcast.com way back when the first Internet bubble was being inflated. Would they have said that only a moron would pay $5.7-billion for such a wild dream about the future of online video? I bet they would have. Luckily for Mark, Yahoo wasn’t listening and it coughed up enough cash to make him a billionaire, and now he can play with his sports team and tell everyone else how stupid they are. I think Don Dodge and I are on the same page.
As Umair points out at Bubblegeneration, YouTube is trying disrupt the entire video value chain, and has gotten a least a couple of rights-holders interested in pursuing that opportunity, and others such as NBC seem to be thinking along the same lines. That doesn’t mean YouTube will necessarily succeed, nor does it mean that someone should pay $2-billion for it. But there is value there.
Fred Wilson says we should stop the YouTube hating, and points to a great rant from music industry gadfly Bob Lefsetz, as well as a recent piece on YouTube with comments from Chad Hurley in the New York Times. And Jason Calacanis has some further thoughts on the issue, in which he says that YouTube’s genius has nothing to do with technology, and everything to do with distribution.