Mark Cuban has a great post up on his blog titled The Ala Carting of Video on the Net - Will it lead to disaster ?
I've been reading Cuban long enough to know that if he poses a question like that in a blog title, he definitely thinks the answer is yes. I'm similarly minded on the topic but it matters not, the video content producers will likely hang on for dear life trying to squeeze every last dollar they can before ultimately meeting with the same fate as the record industry.
While I always love what Mark has to say, I think in this case I love what Craig Moffet of Bernstein Research has to say more. And it was Bernstein's "And Now for the News...The Emperor Has No Clothes" that inspired Cuban to write. Unfortunately I have not seen the report, but Cubes cites the money quote which I agree with completely:
Ironically, we are headed down the same self-destructive road for other kinds of traditional media,as well. Five years into the video-over-the-Internet revolution, we have learned two things. First; consumers won't pay for content on the web, so it will have to be ad supported. And second; it won't be ad supported.
Ouch. Check out the link above for Cuban's thinking on the matter.