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bo-tao | 2 years ago

What does it mean to have no moat?

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ducttapecrown|2 years ago

A "moat" is the protection company A has against company B building a clone of company A's product. For example, YouTube has the set of people who have a habit of logging on to YouTube to watch content. A competitor has to convince all those people to change their habits. This is known to be a hard problem, so it's a moat!

Netflix thought they had a similar moat of user-habits. But it turns out that the more important moat in the streaming market is a moat of content.