Channels with Peter Kafka

What can you learn from the guy who built the iPod?

May 19, 2022
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INSIGHT

Streaming's Profitability Trap

  • Streaming pushed companies to prioritize subscriber growth over profitability, creating unsustainable losses for many legacy media firms.
  • The revenue ceiling is lower while content costs and investor demand for near-term profits have risen, forcing a strategic reckoning.
ADVICE

Raise Enough Runway In A Downturn

  • Give startups enough runway when raising now so they don't need to return to a weak market soon after their raise.
  • Slow deployment and increase diligence in this environment to pick stronger opportunities and avoid overpaying.
INSIGHT

Time Is The Real Competitor

  • Streaming is accelerating cord-cutting and pulling premium content off linear TV, shifting advertiser attention to digital channels.
  • The real competitor for viewers' time is platforms like TikTok, not just rival streamers, which reshapes ad markets and content strategies.
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