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Netflix is not a tech company (2019)

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Re: Netflix is not a tech company (2019)

#161

Post by echelon »

crazygringo wrote: post #42

This is utterly ridiculous. I think it's generally understood that, in the 21st century, a "tech company" is a company that uses tech as the principal competitive advantage to replace traditional "non-21st-century-tech" incumbents. Obviously, Netflix used streaming, collaborative filtering recommendations, and a massive CDN to replace cable TV subscriptions. If that's not a perfect example of a tech company, I don't…

> Obviously, Netflix used streaming, collaborative filtering recommendations, and a massive CDN to replace cable TV subscriptions.

Then Disney, HBO, and CBS are now tech companies.

To stretch your analogy, you might even argue that Target and Walmart are tech companies too. Or UPS, DHL, and FedEx. They do massive scale logistics using computers.

I would go by a different definition for tech. Are engineers the principal innovators and expense driving the company forward? Are automation, growth, measurement, iteration, and hard problems a chief mindset? That's what tech is to me. You could even meet those definitions without being an internet company. SpaceX, Tesla...

Re: Netflix is not a tech company (2019)

#162

Post by i2shar »

wrs wrote: post #138
crazygringo wrote: post #42

This is utterly ridiculous. I think it's generally understood that, in the 21st century, a "tech company" is a company that uses tech as the principal competitive advantage to replace traditional "non-21st-century-tech" incumbents. Obviously, Netflix used streaming, collaborative filtering recommendations, and a massive CDN to replace cable TV subscriptions. If that's not a perfect example of a tech company, I don't…

So you and the author have exactly opposite perceptions of what is “table stakes” (tech or content) and where the strategic advantage in the streaming business lies… Perhaps one missing piece is that there is a first-mover advantage to being the tech disruptor, but in many cases the tech quickly becomes “table stakes” and the strategy goes back to where it was.

Exactly right. And I, as a consumer, would consider content as the primary driver. An efficient delivery mechanism is already (or soon will be) commoditized. Bad content delivered efficiently won't drive profits.

Re: Netflix is not a tech company (2019)

#163

Post by coding123 »

cletus wrote: post #148

Here's the framework I use: "tech companies" are those where tech still plays a significant factor in the growth of the company such that it's important to an executive level. Example: Google is still a tech company. As much as some might view search as "solved" (just like it was when Google was founded I might add), search continues to get better. Tech still plays a significant role in the actual core business (ie a…

If it's solved, why is the UI for any other content streamer as seamless on my roku as the Netflix one. All the others, I might as well be using a 13 channel rotary dial still. Even Prime sucks, just try rewinding or fast forwarding a minute and see how frustrating that is.

Re: Netflix is not a tech company (2019)

#164

Post by flerchin »

websap wrote: post #159
cletus wrote: post #148

Here's the framework I use: "tech companies" are those where tech still plays a significant factor in the growth of the company such that it's important to an executive level. Example: Google is still a tech company. As much as some might view search as "solved" (just like it was when Google was founded I might add), search continues to get better. Tech still plays a significant role in the actual core business (ie a…

> serving several thousand VODs and that problem is solved You're kidding right? You think this problem is solved? Try using HBO. A tech company is any company that understands it can leverage technology effectively to run a more efficient organization. They treat tech as the way to solve problems rather than throwing people at the problem.

You're kidding right? Netflix, HBO Max, Amazon Prime Instant Video, CBS All-Access, whatever, they all do basically the same thing, and the only differentiator for my parents is the content.

Re: Netflix is not a tech company (2019)

#165

Post by bumby »

websap wrote: post #159
cletus wrote: post #148

Here's the framework I use: "tech companies" are those where tech still plays a significant factor in the growth of the company such that it's important to an executive level. Example: Google is still a tech company. As much as some might view search as "solved" (just like it was when Google was founded I might add), search continues to get better. Tech still plays a significant role in the actual core business (ie a…

> serving several thousand VODs and that problem is solved You're kidding right? You think this problem is solved? Try using HBO. A tech company is any company that understands it can leverage technology effectively to run a more efficient organization. They treat tech as the way to solve problems rather than throwing people at the problem.

>any company that understands it can leverage technology effectively to run a more efficient organization.

This feels like too broad of a generalization to be a useful definition. I could make the case any hospital or logistics or is a tech company by this. Tech seems too ubiquitous for this to be an effective definition.

I haven't given it much thought, but maybe "a company with a business moat hinging mostly on its unique technology or ability to use technology" would be a better definition. E.g., Walmart could still be a (less) successful business without an online presence but Amazon couldn't.

Re: Netflix is not a tech company (2019)

#166

Post by jerf »

websap wrote: post #159
cletus wrote: post #148

Here's the framework I use: "tech companies" are those where tech still plays a significant factor in the growth of the company such that it's important to an executive level. Example: Google is still a tech company. As much as some might view search as "solved" (just like it was when Google was founded I might add), search continues to get better. Tech still plays a significant role in the actual core business (ie a…

> serving several thousand VODs and that problem is solved You're kidding right? You think this problem is solved? Try using HBO. A tech company is any company that understands it can leverage technology effectively to run a more efficient organization. They treat tech as the way to solve problems rather than throwing people at the problem.

It's solved by Netflix. Doesn't mean it's solved by anyone else, though there are also quite a few other companies that have it "solved" for their level of usage, even if they couldn't flip the switch tomorrow to become Netflix.

"Solved" also doesn't mean there aren't people maintaining it or working on it or getting woken up at night by pages to keep it going. It just means, they've got a handle on it and when the Netflix executive team meets to discuss the business, they aren't spending much time discussing the question of whether or not they can stream video to their customers.

Re: Netflix is not a tech company (2019)

#167

Post by thehappypm »

Netflix used to be head-and-shoulders above other streaming services, now it seems that streaming (which was unbelievably revolutionary 10 years ago) is trivial now. Look how Peacock and Disney+ just popped up overnight, streaming video is just commoditized now.

I think what makes a company a "tech company" is doing actual R&D. Netflix pioneered a lot of technology around streaming. Google invented the modern search engine. Microsoft builds operating systems. Apple designs hardware and operating systems.

NBC with Peacock? No, they just bought something off-the-shelf.

Is Netflix still doing real cutting-edge R&D? Maybe? Maybe not.

Re: Netflix is not a tech company (2019)

#168

Post by ativzzz »

coding123 wrote: post #163
cletus wrote: post #148

Here's the framework I use: "tech companies" are those where tech still plays a significant factor in the growth of the company such that it's important to an executive level. Example: Google is still a tech company. As much as some might view search as "solved" (just like it was when Google was founded I might add), search continues to get better. Tech still plays a significant role in the actual core business (ie a…

If it's solved, why is the UI for any other content streamer as seamless on my roku as the Netflix one. All the others, I might as well be using a 13 channel rotary dial still. Even Prime sucks, just try rewinding or fast forwarding a minute and see how frustrating that is.

The problem is, for consumers, these minor technical issues don't matter as much as the content on the platforms. Yes, Netflix works much more smoothly than HBO, but we don't choose Netflix over HBO because of the quality of the video streaming app, but for the shows we actually want to watch.

Re: Netflix is not a tech company (2019)

#169

Post by mandeepj »

thaumasiotes wrote: post #149
mandeepj wrote: post #145

I’ve always thought of Netflix as a media company. I believe a simple approach to find out what type of a company - a particular entity is - is to seek what comes to your mind when you think about that co. Toyota - Cars: so, they are a car company. Microsoft - Windows. So, they are a software/tech co. Google - Search. But, they are part of a conglomerate.

Why is Microsoft a "software company" but Google a "conglomerate"? What's the difference?

Good question. I said ‘Google is part of a Conglomerate’ - Alphabet. I also consider them a software co. But, some of you might disagree by bringing - Google ads and YouTube into discussion. This is where things get complicated. Microsoft also had MSN and serve ads in Skype and Windows. Does that make them a media co? I don’t think so. Similarly, FB also does not consider themselves a media company. They say they are a tech co.

Re: Netflix is not a tech company (2019)

#170

Post by duped »

cletus wrote: post #148

Here's the framework I use: "tech companies" are those where tech still plays a significant factor in the growth of the company such that it's important to an executive level. Example: Google is still a tech company. As much as some might view search as "solved" (just like it was when Google was founded I might add), search continues to get better. Tech still plays a significant role in the actual core business (ie a…

There are numerous "unsolved" problems in VoD - technical, economic, and creative. Netflix and YouTube barely scratch the surface, and traditional multimedia organizations give up and ship what they can on other companies' infrastructure without any technical innovation.

XR and interactive content are the obvious next generation of platform with many technical challenges to overcome. It's hardly solved.

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