Netflix has two key disadvantages when compared to competitors: - A lack of broader ecosystem leverage. Apple (through devices and Apple One), Amazon (through

Netflix has two key disadvantages when compared to competitors: - A lack of broader ecosystem leverage. Apple (through devices and Apple One), Amazon (through retail delivery with Amazon Prime) and to a lesser extent Disney (via their IP) can leverage these assets to both support streaming growth and not require direct profitability. - A lack of quality. The shovelware of content that Netflix has focused on in the last few years will be their downfall. It makes ideas such as adding advertising palatable – most of the content is crap so why won't they put ads next to it? Apple's best picture win for CODA was an inflection point in the streaming wars. It shatters the illusion that Netflix is the premiere streaming service. Netflix is still the biggest but over time the lack of quality will further tarnish their brand and impact on their ability to raise prices. From a content quality perspective, Netflix with ads will be compared in consumers minds to YouTube. Once this occurs, consumers won't want to pay much more for Netflix than they currently do for YouTube.