Mark Cuban, the prolific investor and Shark Tank star, is usually on the money about business and the future of the tech industry. He has only made the right moves after selling Broadcast.com to Yahoo in 1999. However, I fail to understand Cuban's logic when it comes to YouTube.

In case you don't know--Cuban is a bear when it comes to YouTube, the third most popular site in the world. When Google first acquired YouTube, he claimed that the acquisition wouldn't amount to anything. I think many would say he's been proven wrong, but Cuban continues to bash the video social network.

Here's what Cuban had to say about YouTube at the Re/Code Media conference earlier this week:

"I still believe that some 98% or 99% of the content that's uploaded is only seen by the person that uploaded it and their immediate family... there's also the social things, [the Arab Spring], all these types of things that have had a huge impact on society, and they deserve credit for that.

But at the same time, they tried to do subscriptions. Failed. Right now they're trying again. They tried to do music... And then so, what's next? They paid a bunch of people to make MCN equivalents, and stopped paying them--most of them. What have they done right?"

What have they done right? Fine, I'll bite. Here are just a few of the things that YouTube's done right (and why Cuban is wrong):

  • Make boatloads of money: eMarketer recently estimated that YouTube generated $1.13 billion in video ad revenue in 2014--in just the U.S. alone. I've heard the real number's higher. That's 18.9% of the entire video ad market and will only continue to grow as the site grows and YouTube perfects its still-nascent video ad targeting.
  • The YouTube Partner Program: The partner program is one of the most successful content creator programs ever. It singlehandedly created the next generation of celebrities AND gave those partners the ability to monetize their short videos. This transformed content creators from part-timers filming in their bedrooms to bonafide stars who make their entire living off YouTube and have the power to move products and create an entire ecosystem that the biggest players in entertainment take very seriously.
  • Launch a cultural revolution: Do you know who Tyler Oakley is? Kids sure do--so much so that his mere presence fills entire stadiums. And he's just one of many YouTubers with this power. Beauty YouTuber Michelle Phan now commands a cosmetics business with an $84 million annual run rate. These are the celebrities of the new generation, and YouTube has done all the right things to cultivate this culture and give content creators the power to create such large, engaging audiences. New media is a big business because of YouTube.

It's easy to criticize YouTube and Google for their misses, but more often than not, they've nailed it. It's not a fluke that YouTube is the world's most popular entertainment destination, or that millions of kids and teenagers idolize YouTube celebrities more than TV or film stars, or that online video is a billion-dollar business for Google.

No matter which way you look at it, YouTube is a big business and the cultural force of the next generation. It's one of the greatest acquisitions of this millenium.

Disclosure: Mark Cuban and I are co-investors in wireless electricity startup uBeam.