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Harsh Dwivedi

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Medial • 1d

The problem with single-player utility apps is that anyone can clone them and replicate their marketing. Just saw that Cal AI clones are doing more revenue than Cal AI itself. Once again proves that not just distribution but having network effects is very important in the long-term defensibility. Every new user should directly or indirectly make the experience of your previous users better by some margin. A clear example is how we have n number of OTT platforms, and some perform better than Netflix too. But not a single competitor to YouTube, just because of the network effects it holds. You can create more high-quality shows but not the creators, subscribers, or recommendations that YouTube has built over decades.

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"Nothing scales as well as a software business, and nothing creates a moat for that business more effectively than network effects"

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