In the mid-1990s, just before the dot-com bubble burst, Mark Cuban was contacted by a friend with a business idea.
As a sports fan, his friend Todd Wagner told Cubans that it is profitable to start an Internet audio company that allows users to listen to sports games online. The Cubans agreed with this possibility and established AudioNet in 1995, which was later renamed Broadcast.com.
At the time, for most people, the Internet was a very new concept, so Cuban and Wagner faced many critics who did not believe the company would succeed.
“When I tell people my vision, they will say,’You are crazy. I will only turn on the TV. I will only turn on the radio.'”
“People will laugh at me.”
But this is not important to Cubans.
Cuba said: “I know this is the winner.” “I have no doubt.”
On the one hand, Cubans saw the streaming media market, “At the time we called it web radio or Internet radio,” he told “Being Great”.
Cuba stated that he “strongly believes that streaming will take over all TVs because he” believes in the price-performance curve of personal computers [personal computers] And broadband, as PCs continue to become more powerful, the price of disk drives and bandwidth will continue to fall. “
Cuba says that it is “the fundamental basis of streaming media.”
“I have a vision, we will go this way.”
After the co-founder began to sell products to the company, Cuban said that he noticed the growing demand of people who wanted to listen to sports or music during the workday but couldn’t put the radio on their desks.
Cuba stated: “I quickly saw a high rate of user adoption.” “No one uses it and says they don’t need it.”
Then, as Broadcast.com added the ability to watch audio and video, “Most of our revenue comes from company activity streams and all-staff meetings,” he said. That is “the real money maker for us”.
Broadcast.com’s consumer base is also growing because it is simple for us.
“I know that in order for you to listen to OU [University of Oklahoma] In sports, I am the path of least resistance. Cuban said: “I know anyone who wants to watch or listen to the Mavericks game, I am the path of least resistance.”
“Maybe some competitors try to do the same thing and imitate us, but we are the only way with the least resistance.”
In 1999, Broadcast.com was acquired by Yahoo for $5.7 billion in stock.
That’s why, Kuban said: “If you have the technology that benefits you, if you are the path of least resistance, and if you have consumption, then you have to stick to it. These are the elements that make a moat really difficult. copy.”
He said that this experience has made Cubans more open and believes that his courage can invest in companies or ideas that others may find “crazy”. Today, this includes his investment in cryptocurrency and blockchain-centric companies.
Cuba stated to “Starting Great” that investing in these companies now “feels the same as in the early days of the Internet.”
“You must truly believe in your product” to succeed.
Disclosure: CNBC owns the exclusive off-net cable rights of “Shark Tank”.
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