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Netflix had all the paid TV channels worldwide, physical media sales and video-clubs as competitors. Uber had (still has) taxis. All of these were entrenched co
by rtsil 2y ago
Netflix had all the paid TV channels worldwide, physical media sales and video-clubs as competitors. Uber had (still has) taxis. All of these were entrenched competitors with strong moats.
It's easy with hindsight to underestimate the forces of Netflix's competitors, but consider that even today, the revenue of Pay TV worldwide is still bigger that the revenue of streaming platforms. And unlike streaming platforms, Pay TV make profits hand over fist and didn't incur crazy debts to gain marketshare. They may be on the way to extinction, but they'll make tons of profits on their way out.
- zztop44 2y agoNetflix and Uber both created new product categories in their respective markets. And both where quite established before there was any real competition in those product categories. Netflix discovered that content was the only moat available to them, after which it was effectively inevitable that they become a major production studio. I think Uber are still trying to figure out their most, but ironically regulation is probably part of it. OpenAI also created a new product category, but the competition was very quick to move into that category and has very deep pockets. At some point, they clearly felt regulation might be a moat but it’s hard to see them landing that and winning.