This is a fascinating look at the changing (but repeating) dynamics in the media industry. The central thesis is that every now and then the industry is disrupted by new forms of distribution, which leads to new winners, but ultimately those distribution advantages get equalised over time and then the industry returns to competing on the quality of content.
The obvious example here is Netflix. It pioneered digital streaming and built a giant business out of the competitive advantages in the new form of distribution. But as competitors adopted this form of distribution, Netflix’s competitive advantages eroded and now they compete on the quality of their content.
But Netflix is just the most recent example. Before it, HBO built a similar distribution advantage by pioneering satellite broadcasting. Yet, as Showtime, TBS, USA and dozens of other networks all followed suit, HBO ultimately had to compete on content and price.
This article from Arda Capital compares the experience of HBO and its cable competitors to Netflix and its streaming competitors to consider what is next in the streaming wars.
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