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Yes, yes, and the convenience store in the gas station two blocks down is also "competition" for the Meijer superstore with actual produce and food, that I have
by Vivtek 16y ago
Yes, yes, and the convenience store in the gas station two blocks down is also "competition" for the Meijer superstore with actual produce and food, that I have to drive to.
It's not really competition. I never go to that convenience store because they don't have what I want to eat. So in your sense, while they exist in the same market and are therefore "competitors", that viewpoint really distorts the reality of the situation.
- brianpan 16y agoPoint taken. In Netflix's view, they focus on a specific market niche so that they effectively compete in a smaller, less crowded space. But in analyzing their business, it's not unreasonable to take into account "nearby" competitors even as they differentiate. Netflix themselves do: http://www.slideshare.net/reed2001/netflix-opportunity http://www.slideshare.net/reed2001/netflix-opportunity (slide 31). Overstating BitTorrent's influence would be a mistake, but ignoring them altogether would be a distortion as well.