The way Netflix has evolved and has reached where it is today is incredible. A detailed 2 part article on business lessons from Reed Hastings.
3. “By 2011 we realized that many of the firms we were buying from were eventually going to want to run their own streaming service. We had no reliable supply. We had to go vertical since it was not going to be in their interest to sell to us over time.”
Hastings is saying that Netflix understands the dangers associated with “wholesale transfer pricing.” Eugene Wei has written specifically about how the concept applies to Netflix:
“Netflix had a great advantage when First Sale Doctrine permitted them to buy DVDs at the same wholesale price as any retailer since it capped their costs. But in the TV/movie licensing world, the content owner can constantly adjust their price to squeeze almost every last drop of margin from the distributor as you can’t find perfect substitutes for the goods being offered. Ask TV networks if they make any money licensing NFL, NBA, and MLB games for broadcast. Hint: the answer is no. In the digital world, transfer pricing can be even more of a cruel mistress.”
The complete article
As per Wiki – Dudeism advocates and encourages the practice of “going with the flow”, “being cool headed”, and “taking it easy” in the face of life’s difficulties, believing that this is the only way to live in harmony with our inner nature and the challenges of interacting with other people. It also aims to assuage feelings of inadequacy that arise in societies which place a heavy emphasis on achievement and personal fortune. Consequently, simple everyday pleasures like bathing, bowling, and hanging out with friends are seen as far preferable to the accumulation of wealth and the spending of money as a means to achieve happiness and spiritual fulfillment.
Today’s needull gives few lessons on investing based in dudeism.
1.The Dude: “Sooner or later you are going to have to face the fact that you’re a moron.”
One of the most important lessons you can learn about investing is the location and importance of your “circle of competence.” The task is simple: How do you avoid the investing areas in which you are a moron?
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