Strategic Sacrifices: Feeding the Beast

Licensing decisions made by companies like Disney to partner with Netflix significantly contributed to the decline of their traditional business models while simultaneously promoting Netflix's ascent in the industry. Although these strategies may appear misguided in hindsight, the dilemma was influenced by the pressure to maintain satisfactory earnings growth. Companies prioritized immediate financial gains from licensing deals over long-term sustainability, showcasing a compromise between short-term financial performance and the future of their own business.