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Is there no point in trying unless you can dominate the segment?
by llampx 5y ago
Is there no point in trying unless you can dominate the segment?
- 1123581321 5y agoFor video, there isn’t if you don’t have a realistic plan to drive video serving costs and ad sales/platform costs low enough. For consumers that requires enormous scale. Perhaps a new entrant would burn investment to try but Vimeo is hopefully not going to want to roll dice on an established company with real customers, after having already been beaten by YouTube once.
- llampx 5y agoI understand your point of view. I am not sure whether the notion that there's no space for #2 or #3 etc, is true myself.
- tootie 5y agoI think the proof is in the pudding. Vimeo has been the #2 video sharing platform for a long time and are basically exiting the creator market because it's costing them money.
- theptip 5y agoThe other thing to consider is the that Google gets immense economy of scale from its other cloud business. So a one-product company like Vimeo will always struggle to compete in an economy-of-scale dominant vertical like storage. Microsoft or AWS could compete here if they chose.