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So you and the author have exactly opposite perceptions of what is “table stakes” (tech or content) and where the strategic advantage in the streaming business

by wrs 5y ago

So you and the author have exactly opposite perceptions of what is “table stakes” (tech or content) and where the strategic advantage in the streaming business lies… Perhaps one missing piece is that there is a first-mover advantage to being the tech disruptor, but in many cases the tech quickly becomes “table stakes” and the strategy goes back to where it was.

i2shar 5y ago
Exactly right. And I, as a consumer, would consider content as the primary driver. An efficient delivery mechanism is already (or soon will be) commoditized. Bad content delivered efficiently won't drive profits.
crazygringo 5y ago
Netflix figured out data-driven streaming better than anyone. That's its competitive advantage, full stop. It purchases content based on unparalleled data analysis, i.e. big-data tech. They often don't even order pilots (previously unheard of), they're so confident in their statistics. A useful contrast is with HBO. Yes HBO has a streaming service and app... but its competitive advantage is in prestige content people will pay $$$ for. Somehow HBO's management team is incredibly good at nurturing content in an artistic critically-acclaimed way, rather than tech-data-driven way. For Netflix, tech is the primary differentiator and the content is table stakes. While for HBO it's reversed. It all depends on how a given company is choosing to compete in the same market.
- lotsofpulp 5y ago
  >Somehow HBO's management team is incredibly good at nurturing content in an artistic critically-acclaimed way, rather than tech-data-driven way. It was good. As far as I understand, ATT got rid of most of the bosses responsible for nurturing that quality over quantity atmosphere and they are also now pumping out garbage. A few months ago, I opened up the HBO Max app (which I only have access to due to it being bundled into my mobile phone plan), and this is the show that was being advertised: https://www.hbomax.com/series/urn:hbo:series:GYN4ywAXUS1OLNgEAAAHg https://www.hbomax.com/series/urn:hbo:series:GYN4ywAXUS1OLNg...
  - crazygringo 5y ago
    > and they are also now pumping out garbage ...you mean shows like the critically-acclaimed Mare of Easttown and Hacks and The White Lotus, all this year? Nobody ever said HBO was exclusively prestige content. There isn't enough to fill multiple channels 24/7. But it's still the main factor that drives subscriptions.
    - lotsofpulp 5y ago
      It was exclusively quality content (or a higher probability of it). That is why people used to pay $15 per month just for HBO. HBO's curation was its value. If I have to research whether or not an HBO show is good or not, then the HBO branding is worthless. Thanks for the recommendations though! They look interesting.
- wccrawford 5y ago
  >They often don't even order pilots (previously unheard of), they're so confident in their statistics. And a lot of their Netflix-branded shows are quite mediocre. I'd say they're not so much confident of their statistics about each individual show as they are about being able to promote their shows and get them viewed anyhow. And on the average, it works out for them without the messy bits in the middle with ordering a pilot and having to somehow assess the quality of that pilot in regards to a full show.
- wrs 5y ago
  That is an interesting point but now we need a different metaphor…the table stakes are different for each player at the table?

by wrs 5y ago

i2shar 5y ago

Exactly right. And I, as a consumer, would consider content as the primary driver. An efficient delivery mechanism is already (or soon will be) commoditized. Bad content delivered efficiently won't drive profits.

crazygringo 5y ago

Netflix figured out data-driven streaming better than anyone. That's its competitive advantage, full stop. It purchases content based on unparalleled data analysis, i.e. big-data tech. They often don't even order pilots (previously unheard of), they're so confident in their statistics. A useful contrast is with HBO. Yes HBO has a streaming service and app... but its competitive advantage is in prestige content people will pay $$$ for. Somehow HBO's management team is incredibly good at nurturing content in an artistic critically-acclaimed way, rather than tech-data-driven way. For Netflix, tech is the primary differentiator and the content is table stakes. While for HBO it's reversed. It all depends on how a given company is choosing to compete in the same market.

lotsofpulp 5y ago
>Somehow HBO's management team is incredibly good at nurturing content in an artistic critically-acclaimed way, rather than tech-data-driven way. It was good. As far as I understand, ATT got rid of most of the bosses responsible for nurturing that quality over quantity atmosphere and they are also now pumping out garbage. A few months ago, I opened up the HBO Max app (which I only have access to due to it being bundled into my mobile phone plan), and this is the show that was being advertised: https://www.hbomax.com/series/urn:hbo:series:GYN4ywAXUS1OLNgEAAAHg https://www.hbomax.com/series/urn:hbo:series:GYN4ywAXUS1OLNg...
- crazygringo 5y ago
  > and they are also now pumping out garbage ...you mean shows like the critically-acclaimed Mare of Easttown and Hacks and The White Lotus, all this year? Nobody ever said HBO was exclusively prestige content. There isn't enough to fill multiple channels 24/7. But it's still the main factor that drives subscriptions.
  - lotsofpulp 5y ago
    It was exclusively quality content (or a higher probability of it). That is why people used to pay $15 per month just for HBO. HBO's curation was its value. If I have to research whether or not an HBO show is good or not, then the HBO branding is worthless. Thanks for the recommendations though! They look interesting.
wccrawford 5y ago
>They often don't even order pilots (previously unheard of), they're so confident in their statistics. And a lot of their Netflix-branded shows are quite mediocre. I'd say they're not so much confident of their statistics about each individual show as they are about being able to promote their shows and get them viewed anyhow. And on the average, it works out for them without the messy bits in the middle with ordering a pilot and having to somehow assess the quality of that pilot in regards to a full show.
wrs 5y ago
That is an interesting point but now we need a different metaphor…the table stakes are different for each player at the table?