Disney & Amazon Are Catching Up With Netflix
It's nothing personal. It's just video-on-demand.
When you're starting a business, your competitive advantage is something you really need to look out for. The biggest lesson you need to learn from Netflix is how a unique selling point could actually change the game, or in their case, not make that much difference after a certain amount of time.
Netflix started with a good first movers advantage, and they had a very good competitive edge. No one had a video on demand streaming like them. They were very unique in this sense. But look at the market nowadays. There is Netflix, there's Disney, there's Hulu, there's Amazon Prime, and they're all having hundreds of thousands of users.
First Mover Advantage
When you come to think about it, most technologies are replicatable in time. So what the first mover advantage just gives you is a certain amount of buffer. And it's what you do at that buffer is what determines how long you're going to be on top of the market.
Binance and Coinbase had a very good first mover advantage when they started crypto exchange, when there were not a lot of crypto exchanges, and then once crypto pricing or Bitcoin pricing started to go up, there were over a hundred crypto exchanges in the world that are all very much doing the same thing.
So it's what you do at the beginning that determines how you're going to stay on top.
Apple's Strategy
The best company to learn from in this sense is Apple. When Apple started the iPhone, which was not that much of an innovation per se, it was just a creative way for people to have a product that is good. It was a very good product, really. Touchscreens were there, phones were there.
They didn't really create something out of the box. But they created a mentality of thought that is different, that think different movement. They will create everything out of quality and in a design way that shows you that this is a product of value.
You feel the good product sense whenever you buy an Apple product. And this feel still exists right now till this day whenever you purchase any Apple product compared to any other product. That's a way that Apple improved their advantage or their competitive advantage and climbed to become the world's most valuable company in the world and to maintain this position for years.
Netflix's Challenges
Netflix had a lot of other problems on their way, like users sharing their passwords, their financials decreasing because of that your user is not growing in this sense because they're flocking to other platforms like Disney and Hulu.
But most importantly, the biggest challenge Netflix has seen is that their company's growth does not really depend on their technology anymore. They're not a technological company. They're a content production company. And if they don't do this in a better way than anyone else, than everyone else, then they're going to get out of the race.
Amazon knows this. Disney knows this. And that's why now they're stacking millions of users and they're growing so fast that they're catching up with Netflix.