This is how it was with cable, and it was actually better for the content providers. They made shows and got fat checks from the cable companies every year.
Then they all copied Netflix, because the stockmarket was rewarding it, and had to start dealing with billing, customer retention, technology platforms, advertising platforms. And they all lost a ton of money a doing it.
Not quite the same. Cable had regional monopolies due to the high barrier of entry and economies of scale (building cable infrastructure). There is still some economy of scale for streaming platforms, but if you get rid of exclusive content and the difficulty of making license deals (especially for a small player), then it is a lot easier for a new startup to compete in the area then it ever was to compete with a cable company.
Why is it a poor proxy? Someone who really understands the concepts and has the aptitude for it will get answers more quickly than someone who is shakier on it. The person who groks it less may be able to get to the answer, but needs to spend more time working through the problem. They're less good at calculus and should get a lower grade! Maybe they shouldn't fail Calc 101, but may deserve a B or (the horror) a C. Maybe that person will never get an A is calculus and that should be ok.
Joel Spolsky explained this well about what makes a good programmer[1]. "If the basic concepts aren’t so easy that you don’t even have to think about them, you’re not going to get the big concepts."
My middle school aged child was recently diagnosed with learning disorders around processing, specifically with written language and math, which means even though he might know the material well it will take him a long time to do things we take for granted like reading and writing. But, he does much much better with recall and speed when transmitting and testing his knowledge orally. He's awful with spelling and phonemes, but his vocabulary is above grade level. For kids like him, the time aspect is not necessarily correlated to subject mastery.
> Someone who really understands the concepts and has the aptitude for it will get answers more quickly than someone who is shakier on it
That seems like a big assumption that i don't believe is true in general.
I think its true at an individual level, as you learn more about a subject you will become faster at it. I don't think its true when comparing between different people. Especially if you throw learning disabilities into the mix which is often just code for strong in one area and weak in another, e.g. smart but slow.
If you think they nickel and dime customers, you should see what they do to TV and streaming device makers. They can make basically any demand they want because you can't ship with Netflix.
Most boards(particularly of large publicly traded tech companies) don't hire CEOs to ensure their companies remain stable in the longterm at the expense of profits, they hire them to grow short term profits.
Boards don't see the over-hiring as a mistake. On the contrary, had CEOs not moved to grow their companies relentlessy and pursue profits in the years during/after COVID when tech was booming, their boards would have fired them. Now that times are leaner, they need to rein in spending to maintain profits -- if they dont do that, then they'll be fired.
I think it depends on the company. I don't know how bad of a problem it is for big businesses like Amazon. Sure there's some lost profits and a write-down with the layoff, but it's not like Amazon hasn't been successful and profitable in the meantime. The overhiring may be justifiable as a defensive strategy.
I was at a smaller public company that overhired during COVID then struggled with profits (among other things). CEO and leadership lost a ton of money due to the share price drops from COVID peaks and CEO was ultimately pushed out.
This probably played a role (cash out before bubble pops) plus the acquihire. OpenAI is building a try-everything-and-see-what-sticks product company on top of the model research lab so strong product teams are very useful to them.
Then they all copied Netflix, because the stockmarket was rewarding it, and had to start dealing with billing, customer retention, technology platforms, advertising platforms. And they all lost a ton of money a doing it.
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