In their quest for streaming domination, Netflix engaged in what I called the ‘Uber cash incineration strategy.’ This strategy consists of tapping low-cost external funding sources – both debt and equity – to juice the value proposition of service beyond what existing and new users pay. The idea is that by being so star-spangled awesome, everyone and their dog will become a regular (or subscribing) user. Doing so is a winner-takes-all approach because the firm with the deepest pockets is the one who can offer the outsized benefit the longest and thereby hoover up all the customers. Once a platform has all the users it can then up its fees since there are no competitors left.
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India’s UPI payment platform is delivering…
Shiny new technologies such as blockchain may be cool, but less flashy efforts driving open standards and interoperability are delivering a real revolution that flies under the radar of the tech gurus in England’s Shoreditch and America’s Silicon Valley. India is very astutely leaping ahead of the world.
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