Online video streaming sites from Netflix to Amazon to Yahoo are scurrying to create original #content that will poach viewers away from their rivals. But an analyst with The Diffusion Group says that pouring money into scripted entertainment is a #strategy that is destined to fail. “Business strategies do not work forever, as the most effective schemes are copied and augmented by competitors,” wrote TDG analyst Joel Espelien in a blog post. “As this happens, they lose their capacity for competitive differentiation.” Another problem is that online video-on-demand platforms aren’t growing a viewing audience; they’re simply competing for a bigger slice of the “same viewing pie,” because total TV viewing in the U.S. has remained flat, he explained.
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