Netflix is an Aggregator, with a value chain that lets it drive demand, raise prices, and dismiss competition.
Spotify’s earnings point to a disturbing trend of the company needing to spend to acquire marginal customers; this makes sense because the company does not have power over supply
An anecdote about permanence and file systems, an explanation of how the U.S. text messaging market is unique, then an overview of Google’s earnings and why GDPR might be having an effect.
Snapchat is losing users, and it seems clear the biggest reason is Instagram Stories: that is a win for Facebook, but the pain in advertising may be substantial.
Netflix’s subscriber numbers were disappointing; does the company have a customer acquisition cost problem? Then again, customer acquisition costs should include content, which might not have been good enough.
Google’s Earnings show rapidly rising expenses, which makes sense as the company seeks to grow outside of its core competency. Plus, why even Google is often better off investing instead of expanding.
Spotify is in a much weaker position that Netflix was, because it could not build up a user base before negotiating with its suppliers. However, the company does seem to be acquiring customers efficiently.
Spotify has a marginal cost problem, but while the cause is unique to Spotify, the challenges are more applicable than it seems.
Dropbox has filed its S-1, but comparisons with Box, Atlassian, and Slack demonstrate how difficult it is to tell just how good its business is.
Twitter’s earnings were both less and more impressive than they appeared; plus, a lesson I have learned about direct versus brand advertising, and what it means for both Twitter and Snap.