NEW YORK (TheStreet) -- The media business and the Internet industry are built on contradictory assumptions.
Media lives in a land of scarcity. There are only a limited number of cable channels, and there is only room for a few competitors. That is the assumption built into 21st Century Fox's (FOXA - Get Report) bid for Time Warner (TWX - Get Report) -- putting HBO and CNN under the Fox umbrella would reduce competition and drive profits higher.
The Internet lives in a land of abundance. On the Internet you can change channels with the click of a mouse. So the idea that Twitch, which hosts live streaming shows, is really worth $1 billion to Google (GOOGL) begins, in the clear light of day, to sound like madness.
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