10 ms·

I don't disagree, but where do you see the moat? $12m could be spent on developing hard-to-copy technology eventually, but I don't know if that explains the cur

• IgorPartola 12y ago
  By analogy, I could build an ecommerce site but not compete with Amazon, I could build a search engine but not compete with Google, or a hardware company but not compete with Apple/Dell/Lenovo. These companies have the brand recognition and market share as well as economies of scale. Will economies of scale come into play for Magic? I can see it. The trchnology you can have afree two hours of confus editing is not going to be ask good as the trchnology you get ad we spending a few million on it. They are more or less first to market, and that is no predictor of long term success, but it does allow them to grab customers before others jump in.
• vidarh 12y ago
  For their solution to be attractive, they need to learn your preferences. The more customers they get to place more orders, the less attractive it will be for those customers to sign up with another service and have to go through all the motions of teaching those services about them again. I often pay by Paypal - using an account that's never funded, but paying straight from my debit card - simply because I don't want the hassle of re-entering my card details, for example. It takes very little added convenience before there's a switching cost. And the perceived switching cost may be far greater than the actual switching cost.