Good Post by Cuban on Hulu and GooTube
June 16, 2008
– Comments (3)
Hulu lets you do stuff like that, that GooTube can't, and likely never will be abe to do. That's pretty cool. It's also leeching off GooTube (as we did with Caps vids) to get free video distribution bandwidth, something that costs a lot of dough. Google is still shelling out for this, with no way of making dough on it. That's pretty funny, especially to people like me, who have long said that Google is a one-trick pony. It's a good trick, but for some reason, people out there don't get that Google has failed at everything else it's tried to monetize.
Anyway, here's Cuban's post:
Hulu is kicking Youtube's A$$
an interesting snippet:
Lets start with the 2nd, Hulu laughing at Youtube. Youtube has presented to Hulu something that we can simply call The Youtube Arbitrage. Whats the Youtube Arbitrage you ask ? Simple. Hulu posts clips, not full episodes, clips on its Youtube channel and elsewhere on Youtube. Those clips are preroll AND overlays AND post rolls promoting Hulu and its full episodes of shows and movies. All of which costs Hulu the ginormous cost of ....nothing. From which it generates traffic to its Hulu site on which it sells, to the point of often selling out, display and preroll ads. That's the ultimate arbitrage. We pay you nothing, and you send us traffic that generates ad revenue for us.
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