Billionaire entrepreneur and Dallas Mavericks owner Mark Cuban has shed light on the future of linear television and streaming platforms, highlighting the crucial role of sports media rights.
What Happened: Last month, during an episode of Club Shay Shay, Cuban conversed with host Shannon Sharpe about the evolution of streaming platforms and the future of media.
Cuban, who had anticipated the rise of streaming platforms like Netflix Inc. and Alphabet Inc.’s YouTube, stated, “We were YouTube before YouTube … It was hard to do, but in hindsight, I was shocked no one else had done it before.”
Referring to Broadcast.com, he detailed how he and his partner Todd Wagner initiated with audio and gradually transitioned to video, acquiring rights from radio stations and sports leagues.
He pointed out that the future of linear television is facing challenges, with networks like ESPN witnessing a significant drop in subscriber numbers.
“Now the linear stations are trying to do all sports … That's their angle,” he said.
Citing how streaming platforms like Amazon and Peacock are now carving out pieces of the sports market, Cuban spoke about the importance of sports in keeping linear TV alive.
He believes the current TV model, particularly the high costs of cable and satellite, is unsustainable and that streaming will continue to dominate in the future unless the networks find a way out of it.
“It costs more to get a linear television network than just streaming … That's not going to stick around forever,” Cuban said.
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Why It Matters: Cuban’s foresight into the rise of streaming platforms dates back to the late 1990s when he and his business partner pioneered online streaming with their company Broadcast.com.
The company offered streaming audio and video long before YouTube and other platforms existed. Their innovative venture caught the attention of internet giant Yahoo, leading to a massive acquisition deal worth $5.7 billion in stock.
This helped Cuban reach billionaire status because he owned about a third of the company.
The billionaire, known for his role on Shark Tank, currently has a net worth of $7.76 billion, according to the Bloomberg Billionaire Index.
Cuban has profited from various successful ventures, including his latest startup, Mark Cuban Cost Plus Drug Co., which aims to lower prescription drug costs.
The company attracted 1.5 million customers in its first year and is projected to turn a profit in 2023.
In addition, Cuban has invested in media companies such as Magnolia Pictures and AXS TV, as well as about 85 startups, many of which he discovered through his involvement with Shark Tank.
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