“If you’re counting on the internet replacing cable, you’re crazy,” says Cuban; Ronen posits it as generational—if you’‘re 50 with HD, you’re comfortable the way things are; if you’re 23 and getting your first apartment, you see things differently. Cuban doesn’t see the same possibility of making money from TV online; he’d rather get small amounts—when he can—from multichannel distributors.
Ronen on Redbox: “You’re already going to the supermarket to pick up condoms and you’re picking up the movie.”
Cuban: “When you’re in an a la carte universe, the cost of marketing goes through the roof.”
Let’s make a deal: But he told Ronen: “If you offer me $3 a sub for all million of your subs, I’ll do it.” Ronen replied, “If I bring you a deal that pays you three bucks a sub ...” Cuban reminded him it would take a guarantee. Ronen asked if he would do with a guarantee. Cuban said yes and offered him the same as the HD Net rate card: “You take rate card for a half-million subs and you’ve got a deal.”
Who’s the man: A former DirecTV (NYSE: DTV) subscriber talked about dropping the service because he got tired of paying “the man” for bad service. Cuban: “What Avner’s saying is he wants to be the man.” Ronen: “Boxee is an open source project .. if we’re becoming the man, if we’re trying to get too greedy” someone else can come in. Work in progress.