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Consider that $899 flatscreen on your living room wall. In a few years will it still be a television, or will it merely be a screen hooked up exclusively to the internet where you can access your stored media (housed locally or somewhere in the cloud)?

For some of the attendees at SXSW, it’s a perplexing question, one of thousands being debated here at the interactive festival. But for Mark Cuban (he of Broadcast.net, Dallas Maverics, Magnolia Pictures and HDNET) and Boxee’s CEO Avner Ronen, those are fighting words. The two media heavyweights went nearly toe-to-toe at one of Friday closing the day’s sessions to the delight of 500 fans and the cyberazzi clicking away from the first few rows.

The staged tête-à-tête was actually a re-match, if you will, a resumption of hostilities between Cuban and Ronen late last year on a chat room debating cable TV’s dominance despite its shrinking penetration.

The jabfest Friday was part AV Geek Debate, part professional wrestling weigh-in and part “you’re mama’s so ugly …” smackdown. Except in place of “your mama,” insert “your business model is so screwed, I’ve lost more money in a day than you could hope to make in a whole quarter.”

The argument comes down to a few salient points, one of which was made repeatedly my Mr. Cuban: “In an a ‘la carte world, the cost to create, produce, distribute and market content via internet is unsustainable under any business model.” Coming from a person who made his first billion selling off Broadcast.net to Yahoo, that doesn’t make Cuban a hypocrite as it does make Yahoo a patzee.

Ronen of Boxee on the other hand blames greedy content providers and their billionaire enablers like Cuban and Comcast that perpetuate the strangelhold on household penetration and true net neutrality that will allow all of us more freedom and lower costs in selecting video entertainment content through the web. His company Boxee, which is commonly lumped together with HULU in articles, develops cross-platform freeware with a 10 foot user interface and built-in goodies like social networking tools that have to this point around 1 million subscribers.

Watch the video. It’s not pay-per-view, but it could’ve been. Cuban is always a delight to everyone not wearing a referee’s uniform

My highlight was going up to him during an unexpected building evacuation break. Mark’s a jeans and t-shirt guy who actually went to the high school where I live (Mt. Lebanon). We reminisced about the town and he was aware of the recent high school renovation, as well as the proposed pricetag.

“What, is it something like $113 million?”

“No, Mark. It’s exactly #113 million.”

“Wow, that’s a lot.”

“You know you could do a lot for my taxes and get a the Mark Cuban gymnasium and media center named after you. What do you say?

“No, I don’t do that.”

“Save me taxes?”

“No, put my name on anything.”

He missed the point, or at least avoided it. The same bobbing and weaving he continued the next 60 minutes with his worthy, but overmatched adversary.Mark Cuban and Avner Ronen

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3 comments[spacer]

Bud Adams

March 13, 2010
LOL, the $2000 TV hanging in my living room is a widget crazed machine - with YouTube, Amazon, Pandora, Weather and more. I wish it had Hulu or Boxee, though I probably wouldn't use those features still - I just don't see them as content-rich. IMHO one of the things that will really determine how the future of streaming media will be developed is going to be whether or not America gets over this reality TV craze. Shows like American Idol, Top Chef, The Bachelor, and the many others have murdered quality writing. Americans whine when they have to think or get engaged in a real carefully thought out plot, they'd rather numb up while sitting on the couch... and quite honestly, I don't get it. The truth is Americans value being told what to like, if you're not in a major distribution deal, pumped into millions of households via ABC, NBC or CBS you probably aren't worth it. However we have these new distribution outlets like YouTube, Boxee, Hulu and Netflix, how will they break the mold? Breakthru shows like Sunny in Philadelphia can't hold a candle to American Idol. Not that I'm a fan for Sunny, but I think Cuban makes a good point... when you're dealing with paying "name talent" and actually producing a season of shows (consider only Sitcoms and not dramas with even higher budgets) there is a huge price tag associated... and "on demand" distribution through a Boxee or the like is not exactly going to provide a solid ROI. Boxee just landed a big Funny or Die contract, but at best it's reruns and shorts. We're still very far away from breaking cable right now, but who knows... anything can change tomorrow.
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Bud Adams

March 13, 2010
(sorry, i didn't put break tags in and I lost the formatting of my post) :(
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@squigster

March 13, 2010
Mr. Cuban: “In an a ‘la carte world, the cost to create, produce, distribute and market content via internet is unsustainable under any business model.” YEESH. Sounds like a great session.
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