The problems of business models

What went wrong with Snap, Netflix and Uber? | The Economist - 3 business models embraced by firms born after the dotcom crash of 2001—and subsequently by investors—are losing steam: the movers (which shuttle people or things around cities), the streamers (which offer music and tv online) and the creepers (which make money by watching their users and selling eerily well-targeted ads). Over the past year the firms that epitomise these business models—Uber and DoorDash; Netflix and Spotify; and Snap and Meta (which has tumbled spectacularly out of the trillion-dollar club)—have shed two-thirds of their market capitalisation on average. - On the surface, the movers, streamers and creepers—and their problems—look distinct. On closer inspection, however, their businesses all turn out to face the same main pitfalls: a misplaced faith in network effects, low barriers to entry and a dependence on someone else’s platform. https://www.economist.com/business/2022/10/31/what-went-wrong-with-snap-netflix-and-uber