Moffett argues online video consumers will only tolerate about two minutes of advertising per half hour and when a like for like comparison is done between TV and online video, web producers will need to produce content at 1/8th the cost of traditional TV to make the same returns. The question he asks: "Are content producers prepared to reduce production costs…by 88%? Moffett is pessimistic about the ability of Hollywood to make this transition and it is a question equally relevant to magazines and newspapers, as news organizations around the world seek to re-size and re-make their newsrooms and sales forces to fit with the new order.
I think the larger point here is that the web won't be able to do what mass media can do well and that is aggregate the large audiences that are needed to fund expensive content. Every medium finds its niche.