Mark Cuban Blames Google for the Dead Internet Video Business

From The Business Insider

May. 28, 2009, 8:14 AM

Mark Cuban is known for his bold moves in the film business. HDNet, Magnolia, 2929 and Landmark Theaters are his traditional and not so traditional film companies. He sold his company MicroSolutions to Compuserve in 1999. In this interview with Walt Mossberg and Kara Swisher, he says "Internet video is dead" -- and it's mostly Google's fault when it bought YouTube with no monetizing plan, only for the sake of ubiquity, and it is now subsidizing bandwidth for the world.

Watch: http://www.businessinsider.com/mark-cuban-blames-google-clip-2009-5

Bearish on

This week Investing News Weekly is looking at a company that gives what they call "a cheap alternative to our favorite weekend entertainment activity during these tough economic times, staying home and renting a movie." They go on to say, "With its biggest competitor facing the continued negative sales growth while it continues to show positive growth, this company should be the eventual winner. Our Bearish pick is a known name brand and once celebrated stock that has fallen and investors might be falsely thinking its time to get on board after it beat expectations this week and had a nice rally. The problem is that its product is still high priced and one of the first things people mention when asked what they are cutting on an everyday basis to combat the recession."

Quote: "Netflix has been on our radar for a while and we have been waiting for a pullback to recommend it. It’s down about 10% over the last 3-4 days and we don’t see it going below $40. What really make us look at Netflix as a potential long term buy is the demise of Blockbuster. Anyone that has used Redbox or Netflix will most likely not go back to Blockbuster. If Blockbuster goes belly up which is a real possibility with its negative sales growth over the past 4 years and its ballooning debt, Netflix will be the direct beneficiary."