There's a fundamental reality that shapes both Netflix and Spotify's trajectory: content licensing. 2012 Netflix had access to vastly more of everyone else's library, so it was closer to an indexed search of what was available that one could watch and then getting that video onto your screen. Over time, other companies understood that they were underpricing their content and Netflix was reaping the benefits. Once external forces adjusted, the TV/film bidding wars began. Today, netflix doesn't have nearly as much content as they used to have.
That risk (losing all content and facing extinction) is what pushed Netflix in the direction of being a content-producer, rather than a content aggregator. I agree with everyone's points on the influence of the median user in diluting the quality of the content Netflix produces, but that's not the only forced that pushed us here. Spotify faced a similar crossroads and decided to broaden beyond music once they started losing bidding wars for licensing.
Being a faster horse wasn't an option available to either Netflix or Spotify; there is no path for a 'better 2012 version of netflix or spotify' in 2025. They each had to change species or die, and they chose to keep living.
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