A recent analysis said that, all things being equal, a heavy reliance on marketing spend will hurt a company’s stock valuation. Of course, we say. Duh, we think. But have we ever really thought about how much a factor that is? Let’s think about it using an example. There are two stores in the middle [...]
Tag Archives | Netflix
Here’s the deal. Companies are around to profit maximize – a corporate form of self-interest. For many years, this was the organizing principle of all commercial enterprises. The rules, and rewards seemed fairly clear. Not many people argued with it as a system that worked. Then came the social era we live in. More than [...]
Netflix, a service whose adoption rate has been growing at astounding rate of 3.6M users a quarter, has changed the way we watch shows and movies at home. They are one of the most successful tech firms started in the late 90s. Just think of some of their dot.com competitors: Excite, Kosmo, and Webvan and [...]
Kevin Kelly’s latest entry from ‘The Technium’ continues his take on the long tail. The long tail is famously good news for two classes of people; a few lucky aggregators, such as Amazon and Netflix, and 6 billion consumers. Of those two, I think consumers earn the greater reward from the wealth hidden in infinite [...]
Dial back a year or two and there were lots of questions about whether mashups supported a viable business model. Concerns centered around: low barriers to entry, copyright issues and the risk of someone else owning the data. While all are legitimate concerns, none seems to have derailed the mashup phenomenon.
So what’s going on? Do developers no longer care about making money? Hardly.