Mark Cuban on Internet Video

Mark Cuban wrote an interesting post on his blog: The Great Internet Video Lie

Let me quote briefly:

So what are your options [if you want to stream video to many people] ? You have a single option. You have to use a Content Delivery Network (CDN). CDNs specialize in delivering content that needs to scale to large numbers, and 10k simultaneous users, particularly if its sustained for any period of time, like a cable network would be, is considered a large number.
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If you have dreams of competing with traditional TV network viewing numbers using the internet, dream on. You cant afford it. You have been sucker punched by the Great Internet Lie.

I find this very interesting considering the fact that a couple of months ago I talked with some guys who are working on a startup that enables just this, at basically no more cost than streaming a single copy of the video. The technology seemed very feasible - I think it could very well work.

I just found it interesting that Cuban believes this is a great limiter - he's no newbie to technology. At first I thought his post was naive But as I started to write this I realized he's a lot smarter than that. I just wonder what he's got up his sleeve.

I know that the guys I talked to have a good idea and are running with it. But there are others out there, probably smarter, with good ideas of their own. Finding a software solution to the bandwidth problem is just a matter of time - and there's a lot of money at stake.

Ironically, a software solution that enables efficient small-scale video streaming, allowing small players to reach a wide audience at low (no?) cost... it's a threat to the CDN's. It's also a threat to the media companies.

Cost keeps the small guys out of video streaming, and the media companies like it like that.

I'm not pushing a conspiracy theory or anything, I just imagine that a solution to this problem is a threat and the players with money and interests will do a lot to protect their interests. I imagine there'll be legislation (like DMCA, copyright), patent lawsuits, lack of net neutrality.

Of course, a disruptive technology doesn't mean the little guys will have anything worth watching.

Note: I chose not to work with the start-up for a variety of reasons. But the technology does seem solid, and they seemed to be working toward the right connections. I wish them the best.