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Netflix is not a tech company (2019)

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Re: Netflix is not a tech company (2019)

#251

Post by wheelinsupial »

ssully wrote: post #193
ativzzz wrote: post #168

Earlier quoted context omitted.

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.

I understand this is an anecdote, but out of the apps I use, I probably go to Netflix or HBO first, then Hulu, and Amazon Video last. I honestly try to avoid Amazon's video app as much as possible because of how poor the navigation and discoverability is.

I try to avoid Amazon Prime Video because of the practices they use. It’s basically becoming a cable service now. Ads before the video plays, content locked up behind additional pay channels, which have the TV ads play during the content, and getting teasers of the first season of first few episodes only to find out the rest of the series is on a pay channel.

Re: Netflix is not a tech company (2019)

#252

Post by abeppu »

Areading314 wrote: post #3

We should stop thinking in terms of "tech companies" and think of them in terms of "companies that use tech with a high degree of success". Ultimately any company that makes money is not a tech company because pure technology on its own does not make a business. Also, with the right incentives and management it is possible, although hard, for legacy companies to start using tech better to compete.

> Ultimately any company that makes money is not a tech company because pure technology on its own does not make a business.

Making money is what the _company_ part of "tech company" is about ... right?

It sounds like you want to imagine a world where making tech for non-business purposes is more normalized. I also want to live in that world. But I think perhaps we're so far into a world where tech to be used by an open audience (as vs e.g. secret defense tech) is entirely the province of for-profit enterprises that people have ceased to consider that the players in tech need not be companies.

Re: Netflix is not a tech company (2019)

#253

Post by burntoutfire »

flerchin wrote: post #164
websap wrote: post #159

Earlier quoted context omitted.

> 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.

And bugs. Haven't encountered any in Netflix yet, while HBO Go's are annoying.

Re: Netflix is not a tech company (2019)

#254

Post by burntoutfire »

auggierose wrote: post #118
bcrosby95 wrote: post #95

Earlier quoted context omitted.

Most people wouldn't consider car companies tech companies, but they definitely do R&D and directly sell the technology that results from that inside their cars. Probably because people don't even have a good definition of "tech". Everything we use is tech. Even books. Some of it is old, some of it is new. But people's definition of tech mostly centers around when they were born. As a software developer, I mostly car…

Everybody I know considers a car company a tech company. I think there exists a strange Silicon Valley definition of tech out there. But maybe my German bias shows. I mean, most of the stuff in SV barely qualifies as tech.

For some weird reason, "tech" means "consumer software /SaaS". So, Trello or Yelp is tech, while lasers in space are not tech.

Re: Netflix is not a tech company (2019)

#255

Post by burntoutfire »

munk-a wrote: post #83
chipotle_coyote wrote: post #63

Earlier quoted context omitted.

> Ultimately any company that makes money is not a tech company because pure technology on its own does not make a business. "X makes money, therefore they are not a tech company" seems rather oversimplified in the same way "X is a tech company" is oversimplified. Actually, it seems oversimplified to the point of maybe not being so useful. I think the way most people would define "tech company," if they were pressed…

Is Dell really a tech company though? Does selling computing hardware really count as tech these days since Apple would definitely end up being a tech company under that definition - even with all the other revenue streams it has I think being one of the largest manufacturers of computing hardware would automatically qualify them. I personally consider "tech companies" to be companies with tech I find interesting to…

Apple is not manufacturing any computers, only designing and marketing them. Foxconn et all is manufacturing the Apple-branded computers.

Re: Netflix is not a tech company (2019)

#256

Post by burntoutfire »

tomrod wrote: post #186
tshaddox wrote: post #100

Earlier quoted context omitted.

What about companies that aren’t remotely profitable at all? Isn’t that a huge portion of notable tech companies?

Better term would probably be revenue driver, which is typically what is meant by "profit center." In other words, IT brings sales contracts through the door.

For banks, online banking is a huge driver of business. Some banks have even started claiming (I suspect mostly for recruiting purposes) that they are "in tech sector".

Re: Netflix is not a tech company (2019)

#257

Post by Rd6n6 »

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…

> 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.

By similar definitions, aren’t almost all companies also money companies, employee companies, legal compliance companies, strategy companies, marketing companies, mission statement companies, fundraising companies, etc?

That sort of definition works for giving job applicants a hint about whether the company might need them I guess.

Re: Netflix is not a tech company (2019)

#258

Post by alberth »

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…

Is Telsa then a "tech company" by your definition?

What about Jet.com (pre-Walmart acquisition) that pioneered cheaper shipping / savings by informing users to by substitute products from the data distribution center.

Re: Netflix is not a tech company (2019)

#260

Post by nostrademons »

This gets complicated though. Is AirBnB a tech company? A simple analogy to the article would suggest no, AirBnB is a hotel company.

However, the actual "hotels" are owned and operated by AirBnB hosts, and AirBnB does not derive significant competitive advantage from the quality of their administration, beyond the value of having a large number of hosts on the platform. AirBnB is fundamentally an information company. Its real competitive advantage is that it owns the channel to the customer, it has a really good search function, and it also owns all the data that makes up reputation-management system that's critical to good hotel reservations. These are all tech areas; AirBnB can afford to lose a bunch of venues, even really good venues, but if it loses the review database a good portion of its competitive advantage goes away.

There was a time when lots of people believed Netflix's key competitive advantage was the recommendation algorithm and viewing history. I'm not certain we're in that world anymore - Netflix seems to care a lot more about content than recommendations these days - but I can see why Netflix would've been considered a tech company back then.

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