[apwell23]

> I think this primarily comes down to a fundamental misunderstanding of where the value in streaming services lies from the perspective of old world media giants.

> Meanwhile Netflix has built some of the most sophisticated production tooling in the world, and leveraged cross-country content like no old-world provider ever has.

If it was so fundamental and obvious like you state wouldn't you have been super rich by now by buying netflix stock when it crashed in 2022. Maybe you are ?

Dominant narrative back then was that netflix is nothing specail. Building a stream app is a commodity that anyone can build and the old-world providers have content that people want to watch.

[procrastitron]

Any argument of the form “if you knew that all along you’d be rich by now from playing the stock market” is fundamentally flawed because it overlooks one of the most well known dangers of the stock market:

    “The market can stay irrational longer than you can stay solvent”

It absolutely was obvious ahead of time that most of the competing streaming services would fail because they couldn’t possibly recreate the infrastructure of Netflix, but it was not possible to predict when they would fail.

For a concrete example, before Paramount+ launched I predicted that it would be dead in less than a year.

Clearly I was wrong because it’s still going 2 years later. I still think it will die relatively soon, but predicting exactly when is virtually impossible.

[abracadaniel]

Everything was doom and gloom for Netflix as I remember it. They were wholly dependent on the licensed content that they will inevitably lose. I guess it turns out that becoming a studio is easier than becoming a streaming platform.

[BobaFloutist]

Either that or Netflix just did a better job than the studios did.

Just because someone was more successful with one strategy than someone else was with a different strategy doesn't mean that the strategy is superior, they could just be a better overall player or even a worse player that happened to outmaneuver a better player, or, even, in the massive multiplayer battle royale that is our economy, a worse player that made bad decisions but happened to luck into ideal market conditions.

I don't think Zoom did anything particularly revolutionary, their product just happened to be the exact right balance at the exact right time.

[skeeter2020]

Netflix - The Studio is extremely sub-par, even by today's lacklustre standards. Sure, they have the occasional success; you throw enough garbage against the wall and something will stick.