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"Hulu Is Kicking Youtube's Ass" - Mark Cuban

Los Angeles (CA) - Outspoken YouTube critic and billionaire Mark Cuban has announced in a recent blog post that "Hulu is kicking Youtube’s Ass" and he predicts Hulu’s total revenues will surpass YouTube’s by next year. The secret to Hulu’s success, according to Cuban, is its ability to monetize 100% of its content and that it can piggyback on YouTube by posting small clips of full shows for free.

Cuban calls this piggyback technique "The YouTube Arbitrage". Hulu posts clips on YouTube and these clips link back to Hulu’s full-length tv episodes, movies and other shows. Since Hulu isn’t charged for these postings, the company effectively leverages YouTube’s bandwidth in its favor. In essence, Hulu can grow itself while effectively trying to bankrupt Youtube. "We pay you nothing, and you send us traffic that generates ad revenue for us," said Cuban.

Another advantage in Hulu’s favor is that it can insert ads into every video because the company knows exactly what content it has. Cuban argues that YouTube probably doesn’t know what 99% of its content is and adds that YouTube only has licensing deals with a very small percentage of its videos.

"There is no doubt that Hulu, if it doesn’t already, will have more monetizable traffic and greater revenues than Youtube going forward," said Cuban.

Hulu.com is a joint venture between NBC Universal and News Corp. It has high-quality videos of full television episodes, movies and sports clips. Recently it added full episodes of The Daily Show and games from the NBA Playoffs and Finals.

You can read Mark Cuban’s blog post here

  • gm0n3y
    Youtube is a different market than Hulu. Most of the people watching videos on Youtube aren't looking for TV shows.
    Reply
  • The crowds are different. He is comparing apples and oranges. I watch youtube for concert clicks and originals shows both of which are not found on hulu. If I want to watch a show I go to hulu. So it is making more money, so what, be happy and stop bragging.
    Reply
  • KITH
    just have to mention, hulu is awesome.
    Reply
  • gm0n3y
    I've never actually been to Hulu, I usually just get my TV shows via bittorrent. I'll have to check it out. Mark Cuban sure comes off sounding like a douchebag in this article though.
    Reply
  • lopopo
    gm0n3yI've never actually been to Hulu, I usually just get my TV shows via bittorrent. I'll have to check it out. Mark Cuban sure comes off sounding like a douchebag in this article though. he is a douchebag
    Reply
  • sunny321
    niconico is better =P
    Reply
  • sunny321
    niconico is better =P
    Reply
  • it doesn´t matter im not in the US which is why I use Torrent, i still dont know why content providers wont let other countries watch online. When are these big media conglomerates going to get it the same brands are sold everywhere sell adds internationally and let us see stuff.
    Reply